The Pennsylvania Wage Payment and Collection Law creates a remedy in situations where an employer fails to timely pay wages to an employee. I have handled many of these claims over the years, both on behalf of employees and employers. These claims involve quite a bit more strategic complexity than a simple contractual dispute over compensation. This is because the statute provides for liquidated damages in the amount of 25% of wages withheld in bad faith, plus an award of attorney’s fees to successful employees. In this regard, there is potentially more exposure for an employer than in a breach of contract case with a non-employee. The key to handling these cases is to get a clear picture as soon as possible about the strengths of the claims and defenses. An employer can get trapped in an expensive situation if it fails to identify potential risks.
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