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Sound Business Insights


Apr 4, 2023

In Sound Business Insights Episode 28 - Common Employer Disputes and Defenses Dan Watkins shares many of the types of disputes that San Diego and Southern California employers find themselves in as well as insight into the strategies for defending them from allegations and in agency and plaintiff's lawsuits. Risks facing California employers have doubled in the past 10 years alone from Dan's perspective.  Class action lawsuits and PAGA (Private Attorneys General Act) actions which were non-existent 20 years ago are now one of the most common risks an employer faces.

"PAGA is really heating up.  There are law firms who only (handle PAGA Actions) and they just send out constant communicationsto every (type) of employe you can imagine."  PAGA actions and disputes which can develop into lawsuits which expose employers to having to pay opposing attorney's fees can take a seemingly small issue and inflame it into an extensive and expensive liability.

Dan discusses one of the most common areas of dispute, wage and hour and unpaid overtime lawsuits.  Severance pay for "wrongful termination," misclassification of exempt employees and independent contractors (1099 workers) are also prominent issues for area employers.  Sexual harassment and discrimination allegations are still a substantial risk for any employer, and the risk isn't just the allegations themselves (that are often easily dismissed) but risks associated with the failure to conduct a thorough investigation which is a separate cause of action.  Employers also face increasing risk from "informal conferences" with California Labor Board and other state and federal agencies.  An invitation to "just talk things over" quickly becomes adversarial and ultimately a "settlement conference" where the employer writes a significant check.

Dan shares the best strategy for protecting your interests as an employer - the moment you sense a potential employee dispute or you receive a communication from a lawyer or law firm seeking information about an employee or group of employees you need to immediately call the Watkins Firm.  There are steps our attorneys can guide you through which, when taken, can mitigate the damages you may face or remediate the case altogether.  There is a short period of time which can make all the difference between a small case and a substantial exposure.  Dan finishes the episode with an insightful yet humorous observation: "Call us … we'll tell you that Mole is not cancer!"