Wage-and-hour lawsuits remain one of the most damaging and disruptive risks facing California employers. These claims can escalate quickly, drain resources, and expose compliance gaps you may not even realize exist. But with the right systems and proactive approach, many of these problems can be prevented long before they turn into litigation.
We’ll walkthrough a real case involving a business blindsided by a wage-and-hour class action lawsuit. Their experience serves as a powerful example of what can happen when internal processes break down—and more importantly, how the right legal team can help stabilize the situation and protect a company’s future.
Below, we break down the major lessons from that case and what every employer should take away from it.
The Pain Point: “We Didn’t Know There Was a Problem.”
Most employers don’t seek legal help until they’re already facing a crisis. And in this case, the business had no idea that documentation issues, procedural gaps, and payroll errors had been quietly building up behind the scenes.
This is common. Employers often rely heavily on payroll providers or HR software, assuming the system will flag issues. But, these tools are not substitutes for compliance oversight.
The truth:
Even well-intentioned companies can face significant liability if timekeeping, meal and rest break tracking, or employee classifications are even slightly off.
What We Found Under the Hood
When the client brought Koegle Law Group into the matter, the first step was a full assessment…a triage of sorts, to identify where the exposure was coming from. Quickly, the team discovered:
- Incomplete or inconsistent documentation
- Outdated policies that no longer matched California requirements
- Payroll practices that weren’t aligned with legal standards
- A payroll provider that failed to notify the company about serious compliance issues
For business owners, these findings often feel overwhelming. But they’re also incredibly common and completely fixable with the right guidance.
Why Mediation Was the Right Move
After evaluating the risks, our team determined that dragging the case through years of litigation would only increase costs. Instead, we moved swiftly into mediation.
This approach gave the client three major advantages:
- Cost Control – A faster resolution meant less time, energy, and money lost.
- Risk Reduction – We could negotiate proactively before the case grew stronger.
- A Clean Slate – Mediation allowed us to settle the past and shift focus to compliance improvements moving forward.
For many employers facing wage-and-hour claims, mediation is not just a quicker path, but it can be a strategic, protective one.
Training, Policies, and Preventative Measures
One of the best parts of this case was turning a crisis into a learning moment for the client. During the mediation process, we brought in the organization’s HR and management teams to implement:
- Updated policies aligned with California requirements
- Better documentation practices
- Improved timekeeping procedures
- Clearer communication channels among leaders, HR, and the payroll provider
For any employer, this type of hands-on support is essential. You can’t prevent every claim, but you can drastically reduce the likelihood of repeat violations with training and proactive audits.
Holding the Payroll Provider Accountable
Perhaps the most surprising element of the case was how it concluded. After identifying significant errors and missed alerts on the payroll provider’s part, we contacted the company directly. By outlining how their failures contributed to the lawsuit, we secured an 80% contribution toward the settlement.
The client ultimately paid only 20% of what they would have owed on their own.
This underscores an important point: Liability doesn’t always fall solely on the employer.
Third-party vendors must be held accountable for their role in compliance.
Koegle Law Group helps clients evaluate vendor responsibilities and pursue financial contributions when those partners fail to meet their obligations.
What Employers Should Do Right Now to Protect Themselves
Whether or not you’re currently facing a claim, there are proactive steps every employer should take:
1. Audit Your Wage-and-Hour Policies
Review timekeeping, meal and rest break tracking, overtime calculations, and classification practices.
2. Verify Payroll System Accuracy
Don’t assume your payroll provider is catching issues. Confirm settings, reports, and alerts are aligned with California law.
3. Update Documentation Procedures
Inconsistent records are a leading cause of wage-and-hour exposure.
4. Train Managers and Supervisors
Policies only work when leaders understand how to apply them.
5. Build a Compliance Maintenance Plan
Annual or semi-annual check-ins can prevent small errors from becoming major claims.
How Koegle Law Group Helps Protect Your Business
We don’t just fix problems, we help prevent them.
Koegle Law Group partners with employers to:
- Conduct compliance audits
- Update and strengthen policies
- Provide tailored workplace training
- Defend wage-and-hour claims
- Negotiate settlements and vendor contributions
- Build long-term compliance strategies
Whether you’re facing an urgent issue or want to protect your company moving forward, our team provides the practical, real-world guidance business owners need to feel confident and supported.
If you’d like help assessing your workplace practices or resolving an existing challenge, we’re here for you.
Looking for a trusted legal partner for your business?
Contact Koegle Law Group to schedule a consultation and see how our team can help you navigate your employment and business law needs with confidence..
Disclaimer: This article is for informational purposes only and is not intended to replace legal advice. Employers should consult with qualified immigration attorneys regarding their specific situations and compliance obligations.