The California Department of Labor and Standards Enforcement is an administrative agency in California that provides a forum to have hearings about labor laws for both employees and employers. Typically, an employee would file a claim with the Department of Labor Standards Enforcement (DLSE) for any claimed wages, owed, or other benefits owed. That claim does not include a filing fee and is fairly straightforward. The claim filing process and procedure is far less complicated and time consuming than filing a lawsuit. After a claim is filed, the DLSE will review it and will reach out to the employer about the claim. Then the claims process starts.
After a Claim commences, can an employer respond in writing?
Yes, an employer is given an opportunity to respond to the claim in writing by contesting or explaining the situation. This is a great opportunity by an employer to try to provide their point of view and attempt to work toward a resolution. It will often be helpful to have an attorney during this step as an employment attorney based in San Jose will be able to know the relevant California law on the employment dispute.
If you’re facing a Labor Commissioner claim, consulting with an experienced business attorney can help protect your interests and navigate the complex legal requirements.
Can I settle with the employee without having to go to a hearing?
Yes, possibly. Often, when you are mailed a claim from an employee or former employee, the claim will have a dollar amount of claimed damages. If the employer either agrees to pay that amount or wants to offer a different amount, the employer can contact the Labor Commissioner’s Office to make that offer. An employer should employ an employment attorney because whatever an employer says to the Labor Commissioner’s office might be used against them later in the case or an employer might misspeak causing confusion or a loss in bargaining power. Usually, the Labor Commissioner’s Office will convey this settlement offer to the claimant and if the claimant accepts, there will be a release signed in exchange for the payment agreed upon. This is a low cost way to resolve disputes without many months or years of hearings and extensive time taken away from a business to deal with an employee claim.
What is the first hearing about, this Conference or Settlement Conference?
The first hearing in most Labor Commissioner claims is a settlement conference. The purpose of it is to discuss the potential to settle the case. Even if a party initially wishes to have a hearing, they should still attend and participate in the settlement conference. There are many ways to have a productive settlement conference even if it does not resolve all claims. For example, it is quite common that an employee may have multiple types of claims with some much larger in dollar amount in dispute than others. Some claims may not be worth fighting about, maybe they are $100 or $1,000, but the time to prepare a defense would not make it worthwhile to fight. Settling those claims so they are dismissed early on can save time of the employer and attorney’s fees for the employer’s attorney in preparing for a later evidentiary hearing.
What are the advantages and disadvantages of having claims before the Labor Commissioner versus Court?
Advantage: No Filings Fees
The Labor Commissioner claims typically have no filing fees for either the employer of employee. This alone can save about $1,000 or more for each side over the course of a case.
Advantage: Quicker Processing Times
In most cases, a labor commissioner claim will resolve more quickly than Court, but this depends upon the case and parties. Nick Heimlich has experience handling these claims and generally they resolve within about 18 months or less from claim filing. This can vary quite a bit depending on backlog and whether parties can settle privately before a final hearing. A claim in Court going to a trial will likely take 2-3 years at least.
Advantage: Simpler Forum
Generally, speaking the Labor Commissioner’s Office is far less formal than Court and takes less time to prepare and represent a client than going to Court does. Further, motions and discovery generally don’t happen, items are simply exchanged between parties.
Advantage: Less Attorney’s Fees
While a party cannot guarantee the amount of attorney’s fees needed to defend a client in a particular case, labor claims tend to be far less expensive to handle than Court cases.
As a civil litigation attorney in San Jose, Nick Heimlich has handled claims against employers both in Court and before the Labor Commissioner’s Office. He has dealt with Labor Commissioner Claims from the initial filing, responses, thru to a final evidentiary hearing. Nick Heimlich has also even dealt with the Award after a final hearing and the appeal to Superior Court of Santa Clara County located in San Jose.
Nick Heimlich has also dealt with similar claims for employers that were in Court, including from the time of the Complaint, filing responses, discovery and conferences.
Working with an experienced business lawyer who understands both Labor Commissioner proceedings and court litigation can help you choose the best strategy for your specific situation.
Disadvantage: Less formality and critical examination of claims.
Courts tend to be more formal in their analysis of case law and details of a case. So, sometimes with dispute facts or arguments between witnesses, a court may be a better forum than the Labor Commissioner’s Office.
If a Party wants the chance to potentially recover attorney’s fees, this is also more likely in Court. However, this is really not that great an advantage as you incur many more fees to be in Court. Furthermore, for employers, most employees don’t have any money to pay attorney’s fees or costs even if they lost. Finally, since most cases settle, typically with no one paying any attorney’s fees or costs to the other side, this is generally not an issue.
Need Help with a Labor Commissioner Claim?
Navigating California employment law and Labor Commissioner proceedings requires experienced legal guidance. Whether you’re responding to a claim, exploring settlement options, or preparing for a hearing, having the right legal representation can make all the difference in protecting your business interests.
Contact Nick Heimlich Law today to discuss your employment law needs and develop a strategic approach to your Labor Commissioner claim. Our experienced employment law team is ready to help you navigate this complex process effectively.
