Solving Compensation and Wages Disputes

Solving Compensation and Wages Disputes

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Incidences of business employees complaining of unpaid wages have been common of recent. Disputes arising between an employer and employee may at times result the employee losing his/ her job. Nevertheless, after losing their jobs some end up not even getting compensation of there was any. In this paper, an analytical research will be conducted to examine the incidences that result to a dispute between an employer and an employee, the views of two parties, as well as giving reasons to why it is ethical for employees to be paid as little as possible (Franceschin & Misuraca, 2011). A point of view will also be provided on the point of view that is best suited. In incidences where business employee’s wages or compensation is not paid, an administrative wage claim is filed or alternatively the employee can file a civil complaint levelled against the employer (Perline & Goldschmidt, 2004).

First, a dispute may arise when the employer fails to pay the employee the required minimum amount of payment as stipulated by the state laws. In California for instance, the labour code states that an employee must not be paid less than $8 per hour (Perline & Goldschmidt, 2004). If an employee is paid an amount that is less than $8 then a complaint will automatically be levelled against the business enterprise that had employed him/ her. Under such circumstance, the worker demands legal justice so that he/ she can receive the correct payment. Contrary, some employers are adamant for a number of reasons. Some state that before they recruited the worker he/ she agreed to the company’s terms and conditions which clearly stated the pay that the member of staff would be offered that was bellow the state limit. In such case, the registrar of companies in the particular state or country should clearly have straight forward laws with no loopholes. The laws for employers should be well stipulated in manner that no business license in offered to business enterprises that will pay their employees less than the set limit. A legal action is taken against any company that violates this rule even if there was a signed contract between the employer and employee (Perline & Goldschmidt, 2004). Conversely, the employee is subject to receive full compensation for all the time he served at the business and got underpaid.

Secondly, some in some business enterprises, employers fail to pay their workers overtime compensation. Depending on the rules of the state, in America, it is mandatory that an employee works for a maximum of 40 hours per week (Perline & Goldschmidt, 2004). Well, some employers fail to honour the set laws and they go further to overworking their employees and they also do not pay for the extra hours the employee worked. Workers find it injustice especially when they worked so hard and they have not received their dues. Employers on the other hand argue that little profit margins were achieved during the working hours and therefore they had to go an extra mile letting their employees work overtime so that they could sustain their business enterprise. Another point of argument is that they feel did not want to lay off some of their employee knowing very well that their families depended on them and laying off an employee meant their families would suffer. In this case, it is the role of the employer to only recruit an employee if he/ she can pay them without surpassing the 40 hour limit. In circumstances where the employee works overtime then he/ she is to be fully compensated. Such scenario plays to the advantage of the employee and not the employer.

Disputes at work place arise after disagreements between the employer and employee. At times the employee is laid off with employers citing that the employee was laid off on the basis of gross misconduct. Well, such incidences require that the employee once laid off is subject to full compensation for the period he/ she worked for the business and was not paid. Rows and differences between the two parties may be big to an extend that an employer fails to pay the employee. If a complaint is filled, the employee is subject to receive full compensation for the period he/ she worked and was not paid. Employers cite grows misconduct as the reason they laid off the employee and it is the same reason that makes the former member of staff fail to receive compensation (Franceschin & Misuraca, 2011). Workers in most cases are bitter because they have not received compensation yet they worked and were subject to getting paid. Such situation is not in any case subject to any form of argument. In fact, the employee should be fully compensated because they worked and the work was not for free.


Proper creation of workplace laws are essential and can be very essential in solving rows and disputes between employers and employees (Franceschin & Misuraca, 2011).  Well stipulated laws will provide a proper guideline on who was wrong where and clearly defined rules will cite the circumstances an employee is accrued to compensated or not.


Franceschin, G., & Misuraca, F. (2011). India: Commercial law, customs and taxation.

Alphen aan den Rijn: Kluwer Law International.

Perline, I. H., & Goldschmidt, J. (2004). The psychology and law of workplace violence: A

handbook for mental health professionals and employers. Springfield, Ill: C.C. Thomas.