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Business litigation: Be aware of when employees clock in and out

Time is a precious resource for any company here in Georgia, and it is imperative that savvy business owners account for their employees’ time. Not only does a business need to ensure that the time of its employees is valued, but it also needs to be certain that workers are also honoring the company’s time. Failure to do so can result in lost productivity and money for the company or lost wages and resentful feelings for the employees. In extreme cases, a business that does not properly pay employees for their full workday risks business litigation. This is the scenario one student loan servicing company finds itself in.

Two employees have filed suit against their former employer. They claim that they were not paid for their entire workday. They say that the process for clocking into work required logging into several different computer programs before actually starting the clock on their workday. Their suit says that the process took approximately 10 to 12 minutes each morning and when they returned from lunch, adding up to 20 to24 minutes of unpaid work time. They assert that this violates the Fair Labor Standards Act.

The company says that while it hasn’t been served with the official suit, its allegations are similar to another suit it encountered in the past. That lawsuit was dismissed after the court decided there wasn’t sufficient evidence for the plaintiffs’ claims. The employees intend for this claim to become a class-action lawsuit since the company operates in multiple states. In addition to the alleged Fair Labor Standards Act violations, the suit accuses the company of breach of contract and unjust enrichment.

This particular case shows just how important it is that a business accounts for its employees’ time. Though most employees are dedicated and honest about the time they spend working, some may be less scrupulous, even going so far as to steal time from a business or accuse a business of unfair practices. Companies wanting to protect their interests may want to consult an attorney here in Georgia with experience in handling business litigation.