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June 29, 2007

HB 1247 which recently became law

HB 1247 which recently became law applies to all legal actions to recover wages or compensation commenced on or after the date the bill was signed under the Wage Act statute. It makes a number of important changes to the wage claim statute including eliminating the provision for a mandatory award of fees to a defendant in any case in which the plaintiff fails to recover more than the amount the defendant had tendered. This eliminates some of the risk and allows for more cases to be filed under this statute.

It also increases the penalties to an employee who prevails under the Wage Act to 125% for the first $7,500 in unpaid wages or compensation, and 50% of unpaid wages or compensation above that amount.

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