As businesses continue to navigate significant operational changes across sectors, labor and employment challenges have taken center stage, prompting both management and employees to seek clarity on evolving workplace standards. Expert insights from attorney Sue Bendavid of law firm Lewitt Hackman shed light on some of the critical issues confronting employers today, particularly in California’s complex regulatory environment.
One of the most common mistakes Bendavid highlights involves wage and hour compliance. Employers frequently encounter issues when employees work “off the clock,” such as attending to tasks after hours or during breaks without proper compensation. These seemingly minor lapses can accumulate into substantial legal exposure, especially in class-action lawsuits. Another frequent error is the failure to include commissions or incentive bonuses when calculating the “regular rate of pay” for overtime purposes. Additionally, Bendavid points out that inadequate documentation of disciplinary actions and terminations often complicates legal disputes. Many employers tend to soften termination communications, which can lead to surprise and subsequent grievances from employees who may then scrutinize their treatment during employment.
To minimize wage and hour risks, Bendavid recommends that employers conduct regular audits of their payroll and timekeeping procedures. This includes ensuring accurate recording of hours for non-exempt staff, compliance with mandated meal and rest breaks, and precise calculations of overtime premiums. She also stresses the importance of ongoing reviews of employee classifications—particularly distinguishing between exempt and non-exempt employees and correctly categorizing independent contractors under California’s ABC test. Given the state’s nuanced legal standards, consulting with employment law counsel is advisable when reviewing these classifications and wage-and-hour practices.
Bendavid advises companies to update their employee handbooks annually or in response to significant legal changes at the federal, state, or local level. Updated policies should explicitly address remote and hybrid work arrangements, evolving leave laws, accommodation requirements, wage compliance, harassment and discrimination prevention, and pay transparency. She emphasizes consistency between a company’s written policies and its actual practices, noting that discrepancies can lead to confusion among employees and may be detrimental in potential litigation.
On fostering a positive workplace culture while mitigating the risk of discrimination, harassment, and retaliation claims, Bendavid recommends creating an environment where employees feel secure in reporting concerns. Leadership should establish clear behavioral expectations, provide ongoing training, and maintain accessible reporting mechanisms, including anonymous options when feasible. Ensuring that complaints are taken seriously and addressed promptly remains a cornerstone of an effective prevention strategy.
These insights come as organizations continue to adapt to a rapidly changing employment landscape, balancing operational demands with the legal complexities inherent in today’s labor environment.