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Employee Compensation Disputes

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What Is Employee Compensation?

Employee compensation is defined as cash payments and/or benefits that a worker receives in exchange for the services that they provided to their employer. The majority of employees receive wages or salary payments as their main form of compensation. However, employees may also receive other forms of compensation such as health/life/disability insurance, pensions, vacation benefits, and stock options.

Compensation may be divided into two main categories: fixed and variable. Fixed is usually subject to a set rate and includes wages, salaries, and benefits. Variable is often dependent on the employee’s performance, and can include sales commissions, pay bonuses, cash incentives, and other similar forms of compensation. The expected form and amount of compensation is generally stated in the employment contract.

What Are Some Common Employee Compensation Disputes?

The most common type of employee compensation disputes are wage and hour disputes. This type of dispute can include withholding pay, disputes over overtime pay, and disputes involving minimum wage or other pay rates. Other disputes may include:

  • Disputes over medical leave and other benefits
  • Retirement and severance package disputes
  • Conflicts over workers compensation for on the job injuries
  • Insurance disputes
  • Spousal benefit claims

Some compensation disputes may also involve other legal issues, such as discrimination.

What Are Some Ways to Resolve an Employee Compensation Dispute?

In some cases, a dispute over employee compensation may be resolved through the company’s human resources department. This can often help to sort out a minor disagreement or a clerical error. More serious violations and disputes may require an investigation by a government agency such as the EEOC, especially if the dispute in question involves allegations of discrimination.

Some disputes may require a lawsuit in order to fully resolve the conflict. Remedies in an employment lawsuit generally include a damages award to compensate the worker for missing or unpaid wages. It is also common for courts to require mandatory changes in the employer’s compensation practices.

Should I Hire a Lawyer If I Have an Employee Compensation Dispute?

Disputes over compensation can sometimes involve large sums of money. This is especially true if a compensation issue has been going on for several weeks or months. You may wish to hire a qualified employment lawyer in your area if you need help resolving a compensation dispute. Your attorney can provide you with legal advice for your claim and inform you of your options. If you need to file a lawsuit or an administrative claim, your attorney can represent you and make sure your interests are protected.

Photo of page author Jose Rivera

, LegalMatch Legal Writer

Last Modified: 02-23-2017 06:24 PM PST

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