5 Legal Defenses Against Minimum Wage Violation Claims

 Posted on September 24, 2024 in English

Minimum wage is an issue that is gaining an increasing amount of attention from media and policymakers. Federal law sets the minimum wage at $7.25 an hour, though some states have passed laws setting it above that amount. Beginning next year, New York will have the highest minimum wage in the country at $16, more than double the federal rate. Maryland is close behind at $15 an hour.

Employers must be vigilant in following these evolving laws. A business that is determined to have violated minimum wage laws can face heavy penalties from the Maryland Department of Labor. Therefore, it is important to retain a Maryland civil litigation attorney to protect your business from claims of minimum wage violations. This article will discuss five legal defenses to such claims.

Statute of Limitations

One possible defense against claims of minimum wage violations is that the statute of limitations has expired. Under federal law, an employee has up to two years to bring a claim against an employer for failing to follow minimum wage laws and three years if the violation was willful. Under the Maryland Wage Payment and Collection Law, an employee has three years to bring a claim. In either case, if the employee brings the claim after three years have passed since the wages were due, it may be denied.

Employee Exemptions

Not all employees are entitled to minimum wage. Those exempt from minimum wage laws include:

• Employees paid on commission
• Executives and administrative employees
• Professional employees, such as those who have advanced training in a certain specialty
• Immediate family members of the employer
• Outside salespeople
• Certain agricultural employees

If a worker falls into any one of the employee exemption categories, the employer may have a strong legal defense against a minimum wage violation claim.

Off-Duty Work

Another possible defense against a claim that an employer failed to pay a worker minimum wage is if the work was done off the clock. Some employees, such as inside salespeople, may take calls after work hours and outside the office. If an employer can show he or she was unaware of the employee’s off-duty work and did not approve it, it may protect the business against a claim of unpaid minimum wages.

Payroll Errors

Sometimes, an employer’s failure to pay a worker the minimum wage rate can be a simple accounting oversight. If the business can show that the violation was due to a payroll error, it may protect the employer against penalties.

Failure to Request Wages

One of the prerequisites for a minimum wage violation claim is that the employee must request the outstanding payments from the employer and be denied. If the employer can show that the employee never asked to be paid overdue wages, it can claim it acted in good faith and may avoid penalties.

Contact a Rockville, MD Wage Claim Defense Attorney

A violation of minimum wage laws can be disastrous for a business. At Salvado Law Offices, we know employers' challenges, and we are committed to building a strong legal defense against wage claims for your business. Speak with an experienced Clarksburg, MD wage claim defense lawyer by calling 301-933-1814 today.