If you underpaid an employee by $608, how much should you have to pay to rectify the mistake? $608? $1216 to punish you for making the error? Both those things seem somewhat reasonable and, indeed, Precision Demolition paid the defendant twice his actual lost wages. But, they also had to fork over $41,333.70 in attorneys fees.
This was actually not what the attorneys asked for–they asked for $141,236.50 in attorney’s fees, $1,272.30 in nontaxable expenses, and $10,568.82 in taxable costs, and the court cut it down by doing some calculations based on what an attorney should be paid in the local area.
Is this fair?
Some of you may say yes, evil horrible businesses try to steal wages from unsuspecting and naive employees. Wage theft is the the idea that businesses purposely underpay employees, often by labeling them as exempt from overtime when the law says the employee qualifies for overtime pay.
To keep reading, click here: How a $608 Mistake Cost This Business Over $40,000