When workers file a complaint alleging that they have been underpaid or unpaid, it should be taken very seriously. One complaint may only be one part of a much larger problem, and it may not be long until additional complaints are filed.
Wage disputes often arise because of how employees are classified. They may be considered exempt or nonexempt, and many Maryland companies use employees and contractors which are also different categories of workers. If there is a problem or argument over how one type of worker is classified, wage disputes may be inevitable.
For example, recently a case was resolved between a woman who worked as an exotic dancer and the club where she worked. According to reports, the woman claimed that the club unfairly classified her and the other dancers as independent contractors, and therefore failed to comply with minimum wage and overtime requirements.
The woman filed a lawsuit against the club and there were allegedly 75 other dancers who were prepared to join a class action lawsuit.
However, the woman had apparently signed an employment contract that limited her dispute resolution options to arbitration instead of litigation. The case was withdrawn and the case was resolved outside of court with a confidential settlement.
This case brings up a couple different important and common aspects in wage disputes. First, it was based on a misclassification of employees and evidently affected many more people than the one person who filed the lawsuit. Second, the dispute had to be resolved through arbitration rather than in a courtroom with a judge, which can be a clause in employment contracts that people may not realize or understand.
People who find themselves in a situation where they have reason to believe they have been unfairly compensated should know that they have rights to take legal action. Pursuing a satisfactory resolution, while complicated, can be crucial not only for the person filing the lawsuit but also for other workers who may be in the same situation.
Source: PennLive.com, “Exotic dancer settles wage dispute against Harrisburg club,” Matt Miller, April 16, 2015