Denver Wage and Hour Business Lawyer
Denver Civil Defense LAWYERS
As a Denver business owner, there are several laws and regulations by which you must abide, otherwise you risk losing money and damaging your business’s reputation.
Many of those laws have to do with wage and hour disputes. The best way you can avoid wage and hour disputes is by partnering with a Denver business attorney prior to hiring employees. If you do find yourself the center of a legal claim, that same attorney can help you fight the charges and protect both your reputation and your livelihood.
At the Thomas Law Firm, we help employers understand and protect their rights. Whether a lawsuit was already filed against you or you just want to take measures to mitigate legal action, contact our law firm to better understand your rights and limitations.
Overtime Disputes
Businesses in most jurisdictions are required to pay overtime wages. Occasionally, employees will dispute whether or not they are entitled to overtime pay. These disputes will usually involve these issues:
- The rate at which a worker is paid versus the rate at which the worker is supposed to be paid;
- Hours worked;
- Whether or not the worker is entitled to overtime pay;
- Tax reporting and other administrative issues; and
- Overtime exemptions for particular employees.
There are some cases in which a business is not obligated to pay overtime wages. Those employees who are exempt from overtime pay are those who are: 1) salaried; and 2) are employed in an executive, administrative, or professional capacity. They must manage at least two other employees or run a significant business unit. Other exemptions include doctors, teachers, and lawyers.
Commission Agreements
When an employee receives commission or bonuses for sales, the employer must make an agreement with the employee, referred to as a commission agreement, as to the terms of the employer-employee relationship. Whether a sales representative is hired as an employee or an independent contractor, the hiring entity and the employee must have worked out a commission agreement, which can be either written or verbal.
Businesses should put their commission agreements in writing to avoid such disputes. It is important that businesses carefully draft such agreements. Sloppy commission agreements can easily lead to employee lawsuits. The Thomas Law Firm can help them draft or review documents pertaining to commission agreements or even settle disputes.
Employee Classification
Misclassification of employees can seriously hurt a business. Proper employee classification ensures that there is no discrimination when it comes to benefit plan eligibility or compensation. Improper classification can lead to penalties such as:
- Collection of unpaid wages;
- Back taxes;
- Penalties for failing to deduct and withhold taxes for misclassified employees; and
- Punitive damages for unpaid wages and taxes.
Independent Contractors
Sometimes a business will hire an independent contractor to do a job that is outside the jurisdiction of the business. An independent contractor will perform compensated work but will not be considered an employee. This arrangement is usually made verbally or in writing. Independent contractors can work with a large array of businesses but do not enjoy the same legal protections that employees do.
This distinction is important, as independent contractors are not entitled to overtime pay, vacation, workers’ compensation, or other protections. However, if an independent contractor meets the criteria for employment, he or she will be entitled to these protections. Factors such as the following are used to determine whether individuals are working as independent contractors or employees:
- The degree and nature of control that each party has over work circumstances;
- How much of a monetary investment the worker has in materials or equipment;
- The degree to which the services performed form an integral part of a business;
- The permanency of the business relationship;
- The individual’s opportunities for profit and loss; and
- Whether or not the worker must compete against others on a bidding system for work.
Whatever the situation, the Thomas Law Firm can assist in cases involving any of the above disputes and help businesses draft or review important documents or even assist in litigation. Contact our Denver law firm to begin taking the necessary measures to protect your business and its reputation.