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Los Angeles Employment Law Blog

Steps to take if an employee sues your company

As a business owner, you do your best to do right by your employees. But even so, there may come a time when you just don't see eye to eye with a worker, which results in a disagreement and potential lawsuit.

If an employee sues your company, it's critical that you don't sweep it under the rug. Even if you don't believe they have a legitimate claim, you can't ignore it and hope it goes away.

Is your company tip jar in compliance with federal laws?

Companies that allow tip jars need to be careful to follow very specific laws to maintain it legally and interpersonally. To avoid trouble with wage rights groups and other federal institutions, you should revisit it regularly.

Do you rely on a tip jar (or a tip pool) as part of your employees' regular wage? Do you know how the federal tip credit applies to the tip pool?

Are your employees in computer-related jobs considered exempt?

California’s booming technology industry is one reason the state’s employment rate is on the upswing. As the owner of a technology company, you frequently hire new workers to fill computer-related positions and meet the demand of a growing industry.

When hiring, you must determine if an employee is eligible for overtime pay. If not, they’re considered exempt. Knowing how to classify an employee as exempt or nonexempt can prevent future legal issues, and you can keep your business running smoothly.

New federal laws reinforce California tip rules

People outside the restaurant business are often surprised by the complex and heated controversies over tipping that can arise among employees and with management. When laws change, or management tweaks the house rules, tense debates often begin anew.

To keep the peace, as well as stay out of legal hot water, the best a restauranteur can do is comply with the current laws and adjust your policies as laws change.

Kenneth J. Sargoy
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