Legal Question in Employment Law in California
Do you know if California has any statutes regarding time limits regarding when an employer's obligation to correct a payroll error needs to be rectified? I have a few staff who feel that they have not been paid correctly for the last few years.
2 Answers from Attorneys
wage claims have a 3 year statute of limitations at most.
If the employees are claiming unpaid overtime, the deadline for the employees to sue (statute of limitations) is 3 years or 4 years if they bring a claim called unfair business practices (usually when a company fails to pay many or all employees the wages owed). To avoid a lawsuit, which if you are found liable, may be held to pay waiting time penalties, interest and/or their attorneys' fees - you may want to do an audit of their pay - going back 3-4 years and pay them what is owed. Have them sign a contract agreeing that they have been paid in full. I strongly suggest that you call an employment law attorney to guide you through this and to draft the agreement. Wage lawsuits can get very expensive.