This is a case every counsel for an employer should use as an example of why compliance is so important.  We can kvetch all we want about the laws, but kvetching doesn’t get financial results.

This case was over a ministerial error of $44.63.  The Defendant settled for $10,500.00 plus reasonable attorneys’ fees to be determined by the Court.

The trial court awarded no fees in response to the Plaintiff’s request for over $46k in fees.  The Court of Appeal reversed and only awarded $500.

While the courts weren’t having any of the exorbitant attorneys’ fee arguments, they still had to award something because that’s what the law requires.  But that’s not what strikes me here.

What strikes me is a $10,500+ (ultimately a nice round $11k) for a $44.63 screw up.  Not to mention all of the attorneys’ fees involved, including on the appeal.

The bottom line is: don’t underpay your employees.  Err on the side of overpayment.  If you don’t like it, write a letter to your state representatives (who really should do something about this.)

I know they settled here so it doesn’t matter–but does anyone think that if this case had ended up in a $10,500.00 judgment that there would be an Eighth Amendment challenge?

Tags: wage/hour

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