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Should You Settle Your Employee's Labor Commissioner Claim Against You?

1/15/2016

 
Labor Commissioner Hearing in California
As an employer, who is facing a labor commissioner claim for unpaid wages, overtime, and other possible violations, which was brought by your present or former employee, the practical consideration of fighting a claim are just as important as the legal merits of the claim against you. When making the decision as to whether to have a hearing on your claim v settling the claim early and avoiding the risk of losing the claim, you need to ask yourself the following four key questions: 

1. How likely are you to win v lose? An experienced employment attorney should be able to advise you on your chances of prevailing v losing and what's the most you can lose, so that  you know what your risks are. Even though no attorney can know for sure the outcome of a claim, knowing your chances and assessing your exposure risks will help you make the decision about continue to fight v settling. 
 
2. If you win, will this really be a victory for you? How much will it cost you to take the claim all the way through a hearing even if you end up winning. Will you spend more on an attorney than you can settle your claim for today? If so, maybe it's worth considering putting the principle aside for the sake of making the right financial decision and making the claim go away earlier than later. 

3. How much of an (emotional) distraction is this? Do you get angry, anxious or stressed out from this process? Does it interfere with your ability to run your business efficiently by taking your time and mind away from what's really important to you now? Is this something you can put to rest relatively inexpensively? If you answer "yes" to these questions, it might be worth settling your claim sooner than later, especially if the amount doesn't justify losing sleep over it.   

4. Do you need to send a strong message to other employees? Is it important for you to fight this case to send a message to other employees that you don't settle claims easily in order to discourage them from filing (similar) claims? If so, you might have to continue fighting and even consider filing an appeal if you end up losing at the labor commissioner hearing. If you are not ready for this, this is yet another reason to settle sooner than later.   


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Law Office of Arkady Itkin - San Francisco & Sacramento Injury and Employment Lawyer
We represent employees and employers in employment and wrongful termination cases, as well as victims of serious injuries in San Francisco, Oakland, Sacramento, San Jose, Palo Alto, San Mateo and throughout Northern California. We all represent businesses and start-ups in a wide range of business and employment issues and disputes. 


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  • Home
  • Employment Law
    • Wrongful Termination >
      • At-Will Employment
      • Termination After Unfair Warnings and Write-Ups
      • Union Grievance, Workers Comp and Wrongful Termination
      • Labor Code 970 Claims
      • Promissory Estoppel and Employment Contracts
      • Implied Contract Claims
    • Discrimination >
      • Proving Discrimination
      • Age Discrimination
      • Disability Discrimination >
        • Protected Disabilities
        • Medical Leave / Disability Accommodations
        • Job Reassignment As A Disability Accommodation
        • SSI Disability Benefits and Your Court Case
        • Sample Request for Reasonable Accommodation
      • Pregnancy Discrimination
      • Race Discrimination
      • Sample Discrimination Complaint
      • DFEH and EEOC Investigations
    • Retaliation >
      • How to Prove Retaliation
      • Dealing with Retaliation While Still Employed
      • Retaliation for Complaining
      • Whistleblower Retaliation
    • Harassment
    • Defamation at Workplace
    • Prof. License Defense
    • Leaves of Absence >
      • Medical Leave as Reasonable Accommodation
      • FMLA Entitlement and Reinstatement to Work
      • CFRA Leave
      • Employers' FMLA Notice Obligations
      • Paternity Leave (FMLA)
      • Sample FMLA Leave Request
    • Wages / Overtime Claims >
      • Wage Claims
      • Employee or Contractor
      • Exempt / Non-Exempt >
        • Admistrative Exemption
        • IT Support Specialists Compensation
        • Computer Professional Exemption from Overtime
        • Recruiters / Account Executives Exemption
        • Complaining About Being Misclassified
      • Vacation Pay / PTO
      • On-Call Time Compensation
      • Deductions fr. Commissions
    • Unempl. Benefits Appeals >
      • Tips for EDD Phone Interview
      • Unemployment Benefits Appeal Hearing Representation
      • CUIAB Hearing Tips
    • Employment Law Blog
    • For Employers
  • Personal Injury
    • Five Tips For Injury Cases
    • Slip-and-Fall Injuries
    • Assault and Battery
    • Recorded Statements
    • Repairing Your Vehicle
    • Unpaid Medical Bills
    • Injury Law Blog
    • Medical Malpractice
    • Police Excessive Force
  • Practice Areas
  • About
  • Results
  • Submit Case
  • Contact
  • Resources
    • Consultations
    • Workplace Rights Checklist
    • Deposition Tips
    • Mediation Tips
    • Effective Mediator
    • Suing Current Employer
    • Severance Agreements
    • Workplace Investigation
    • Arbitration
    • Statutes of Limitations
    • Healthy Litigation Mindset
    • Trial Tips
    • Working Remotely
    • How To Find The Right Lawyer For Your Case