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Bryan E. Kuhn
Counselor at Law, P.C.
Business & Employment Law Attorney

Reviewing data on wage claims as an employer

Whether you currently find yourself in the middle of a wage-and-hour dispute involving a staff member or worry about workers taking action in the future, it is essential to have a thorough understanding of your options as an employer. Regardless of the size of your business, an unfavorable outcome could wreak havoc, not only from a financial point of view but also in terms of your firm’s reputation.

Unfortunately, some employers find themselves in this position over false allegations. Reviewing data on wage claims can shed light on how prevalent these cases are and their consequences.

Statistics on wage claims in the U.S.

According to the U.S. Department of Labor, more than 193,000 employees received back wages over the course of the fiscal year 2021, lower than the fiscal year 2020 (229,934) and fiscal year 2019 (313,941). In the fiscal year 2021, it took an average of 71.38 days to resolve complaints, and the DOL registered over 20,000 complaints throughout the year.

During the fiscal year 2021, the Department of Labor collected over $234 million in back wages.

The impact of wage claims

As an employer, a wage claim involving a single staff member could result in significant financial repercussions. Additionally, you could have to deal with time-consuming legal issues and high levels of stress. You need to carefully evaluate the details of the case, move forward cautiously and prepare for court if necessary.

In fact, a seemingly minor claim could trigger a series of costly claims involving multiple workers. If you are facing a wage claim, it is pivotal to gather evidence and determine the best course of action to safeguard your interests.

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