What Happens if a Claim is Filed
Against My Company?
Notice of Claim
If an employee
files a wage claim against your company, you will first
be sent a Notice of Claim letter with an enclosed copy
of the wage claim (see “Claim for Wages”
document). The letter is to inform you
of the claim against you and will describe the Statutes
and Administrative Codes that the claimant (employee)
is alleging you violated. The
enclosed claim form is filled out by the claimant and
will outline the hours worked and amount that is owed.
It also allows for the claimant to give a brief
description of why they are filing the claim.
The claimant is also required to fill out an
attachment to the claim form that explains how the
amount was calculated. There is a
different attachment depending on how the claimant is
paid, i.e. hourly, piecework, commission.
Many times, the amount owed is inaccurate as
many claimants are filling the form out by memory and
do not have the time records necessary to determine an
accurate number. If the amount of the
claim is inaccurate based on your records, you may
include a check in the amount that you believe to be
owed, plus penalties. Checks for both
wages and penalties are to be made out in the name of
Notice of Claim letter will also describe the penalties
pertaining to the violation.
NRS 608.040 states that if an employer fails to
pay an employee by the time frames described in the
statute, the employer must continue to pay the employee
at the same rate until they are paid in full.
This period cannot exceed 30 days.
This means that the maximum penalty for an
employee who earns $8.25 per hour would be calculated as
follows: $8.25 x 8 hours = $66.00 (daily rate) x 30 days
= $1,980.00. The penalty is not based
on the amount of wages due, but the claimant’s rate of
pay. Please keep in mind that even if
the claimant has been paid their wages, penalties may
still be owed if the wages were paid late.
are reduced to 25% of the maximum penalty at the Notice
of Claim stage. Therefore, if there is a
violation, it is easier to settle the claim at this
point to avoid maximum penalties.
If you disagree with
what the claimant is alleging, you will be asked to
respond with supporting documentation.
Examples of supporting documentation include, but
are not limited to, time and attendance records, check
stubs, and employment contracts.
employer’s, or respondent’s, response is received, the
information is either mailed to the claimant for a
rebuttal, or a meeting will be scheduled for the
investigator to discuss the claim in further detail
with both parties. Most meetings end in
a settlement. Penalties at this stage
are reduced to 50% of the maximum penalty.
settlement cannot be reached between the claimant and
the respondent a determination will be issued.
Penalties at this stage are reduced to 75% of the
maximum penalty. If it is determined
that the claimant is due wages, the respondent must pay
the wages and penalties by the date on the
payment is not received, a final order will be
issued. The respondent will be
responsible for the maximum penalty at this
stage. The order will be filed with the
appropriate court and a letter will be sent to both
parties. If the respondent still fails to pay, the debt
is referred to collections..
respondent will also have the right to object to the
determination by the deadline on the letter.
If the respondent objects in a timely manner, a
pre-hearing conference will be scheduled with the Labor
Commissioner. Both parties must appear
for this meeting and the facts of the case will be
discussed. A formal hearing will also be
formal hearing will be held with the Labor Commissioner
and each party may explain their arguments.
The Labor Commissioner will make a final decision
on the case.