Businesses must follow certain standards and procedures in order to remain open. A class action lawsuit is a legal claim made by employees who are seeking to collectively receive compensation from an employer for the same problem. This type of case can be in response to a faulty or defective product. A collective action is a slightly different procedure used in cases under the Fair Labor Standards Act, the Equal Pay Act, and the Age Discrimination in Employment Act. The Fair Labor Standards Act (FLSA) of 1938 is a comprehensive U.S. labor law that creates the right to a minimum wage and overtime pay when employees work more than 40 hours in a week. It also prohibits the employment of minors in “oppressive child labor.” Companies must uphold these guidelines or risk incurring penalties or legal action.

Class Action

Class action lawsuits may be brought in federal court if the claim pertains to federal law or they meet specific criteria. A class action lawsuit automatically assumes an employee is a part of the affected group unless he or she “opts out.” This can be done by signing a document stating that he or she does not want to participate.

A class action lawsuit is initiated when one or more named plaintiffs file a claim against the defendant(s), all of whom suffered the same injury or damages. Once the complaint is filed, the named plaintiff(s) must file a motion for class certification. The defendants may object to the motion for class certification based on several factors.

The Fair Labor Standards Act (FLSA) of 1938 is a United States labor law that gives workers the right to a minimum wage, as well as overtime pay when employees work more than 40 hours a week. It also prohibits employment of minors in “oppressive child labor.” When a company violates any of the FLSA regulations, employees can file a lawsuit against their employer. These violations can include wage and hour violations, such as unpaid overtime and wages that fall below minimum wage.

Even when business owners unintentionally violate the terms of FLSA, it is important they understand how to prepare for litigation to maintain their company’s good standing. If you are an Illinois business owner who is facing such allegations, an experienced attorney can help protect your business.

FLSA Infractions

In many companies, the human resources (HR) department or person is responsible for making sure management is adhering to FLSA rules. In some cases, owners or managers may not even realize that what they are or are not doing is considered a violation. In other instances, it could result from a misunderstanding or miscommunication between a supervisor and an employee.  A few examples of the most common types of FLSA violations include:

Starting your own business and becoming your own boss can be a dream come true for many people. Bringing your talent and creativity to fruition may allow you flexibility and financial security at the same time. As an Illinois business owner, you have several options regarding what type of company you would like to form. Important considerations include ownership, taxation, and management. Although you may have a vision of how you want your business to run, you may not be sure which business entity is the best choice. Before making this crucial decision, consult an experienced business attorney for advice on the best path for your business.

Business Structures to Fit Your Goals

Running your own business offers many perks and can enhance your work-life balance. However, building a company from the ground up can be a daunting task, with many critical factors to consider before the doors can open for business. There are four main business entities that entrepreneurs may consider, as described below:

• Sole Proprietorship: This type of entity has one owner who may choose to use his or her own name for the company. He or she is solely responsible for the management and daily operations of the business. One benefit of sole proprietorship is that any income generated is only taxed once.

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A typical workweek for employees in the United States consists of 40 hours. However, many workers actually spend more time performing their jobs. For jobs that are paid on an hourly basis, anything over 40 hours is usually considered overtime. Although many salaried (exempt) workers work 50-60 hours a week, they may not be eligible for overtime pay depending on their company or employment contract. The Illinois Overtime law (called the Illinois Minimum Wage Law) mirrors the Federal Fair Labor Standards Act (FLSA) in many ways. Similar to the FLSA, the Illinois overtime law requires that non-exempt employees receive overtime pay equal to 1.5 times their regular hourly pay for any hours worked over 40 in a week. With so many employees working remotely now in response to the COVID-19 health crisis, it may be difficult to track employees’ hours regarding overtime if they are working from home.

Keeping Track of Hours Online

Since remote employees are generally entitled to the same legal protections that on-site workers have, working remotely can present unique challenges that should be addressed to ensure a company is legally compliant. Employers have certain obligations regarding employees’ hours and wages for overtime pay. As a business owner, accurate record-keeping is imperative. Detailed reporting ensures that management and workers are following proper procedures and company policies.

Businesses throughout the country, including Illinois companies, have implemented remote-work arrangements for their employees due to the coronavirus outbreak. In many cases, this is the first time a company may have allowed its employees to work from home. Essential businesses have remained open during the pandemic, such as banks, grocery stores, and hospitals. Non-essential businesses were temporarily closed, including service industries like hair and nail salons, gyms, and fitness centers. These companies had to pause operations since those workers cannot do their jobs from home. On the other hand, office workers in the business field who do the majority of their work on a computer can perform their duties remotely as long as they have a computer and an Internet connection.

A contract is defined as a legally binding agreement that recognizes and governs the rights and duties of those involved, whether it be two or more parties. An agreement typically involves the exchange of goods, services, money, or the promise of doing so later on. In today’s business world, contract disputes are fairly common, regardless of the industry. When an agreement is drafted and signed, this binds the parties together for a period of time. However, when one party deviates from the terms of the agreement, this is known as a breach of contract. Employees usually have to sign a contract before starting work with a company. This can also apply to freelancers or independent contractors.

Breach of Contract

Contract disputes typically arise as a result of one party not abiding by the terms of the contract. This can occur when a person does not perform his or her obligations or fails to comply with the rules in the agreement. In some cases, the legal agreement may have left out important information that causes a dispute. In other situations, a person may falsely represent his or her qualifications for a job or project.

Another major reason for breach of contract stems from the interpretation of the terms between the parties. When two parties disagree about the meaning of their respective responsibilities, that can cause problems. If an individual does not uphold his or her obligations outlined in the contract, the other party can file a lawsuit under the claim of a breach of contract.