Benefits of a Pick-Up-Stix Campaign

Any business that depends on hourly labor should be prepared for disputes over wages. Hour and wage class actions have become one of the most common types of employment-related lawsuits, and they can be a nightmare for employers. But implementing the strategies of a Pick-Up-Stix campaign gives companies a chance to minimize potential liability and quickly resolve these cases.

The goal of the campaign is to reach individual settlements with the putative class members and to avoid additional lawsuits in the future. So, let’s take a closer look at what a Pick-Up-Stick campaign entails and how it can benefit companies facing hour and wage class actions.

What is a Pick-Up-Stix Campaign?

In 2009, employees of the restaurant chain Pick Up Stix alleged that the company purposely misclassified their jobs to avoid paying overtime. After failed mediations, Pick Up Stix offered individual settlements to putative class members that would award them less than what they claimed to be owed. A majority of the employees accepted the offer and signed release agreements, preventing them from participating in the current case and seeking further damages.

Some of the employees who accepted the offer argued that the release agreements were legally unenforceable. However, the California Court of Appeal ruled in Pick Up Stix’s favor and determined that these types of settlements would not be forbidden if there were bona fide disputes and zero wages concededly due.

The tactic of offering settlements to individual employees is now referred to as a Pick-Up-Stix campaign, and it can be a powerful tool for employers.

The Benefits of a Pick-Up-Stix Campaign

Avoid High Damages and Fees

Lawsuits are expensive–very expensive. There are legal fees, court costs, and potential damages to pay. A Pick-Up-Stix campaign helps prevent the matter from ever going to court and reduces the need for lawyers. As long as the company being sued can verify that there are legitimate disputes over the wages the employees claim to be owed, it can offer settlements at a significantly lower price. If enough settlements are agreed upon, employers will avoid higher damages resulting from the trial.

Safeguard Reputation

Mismanaged wage and hour class actions are detrimental to a company’s image. The negative publicity could result in a loss of current and potential customers and years of brand rebuilding. One of the most important aspects of a Pick-Up-Stick Campaign is that it allows employers to handle class action settlements discreetly. When done properly, the company will avoid negative stories and safeguard its reputation.

Prevent Disruptions

Legal battles take up valuable time and resources from companies. During the investigation period and court hearings, upper management and other employees will have to direct their energy and focus away from work and toward the case. Additionally, the financial impact could be so large that the company struggles to operate as normal. These aspects are highly disruptive and will cripple the business’s performance. The goal of a Pick-Up-Stix campaign is to handle the lawsuit as efficiently as possible so that the company can maintain operation standards and meet its goals.

Preserve Relationships with Employees

Companies that are willing to acknowledge concerns and reach amicable agreements are more likely to maintain healthy relationships with employees. When a wage and hour class action is filed, businesses are at risk of experiencing a decrease in employee morale and an increase in workplace tension. But by speaking directly with each putative class member and offering a reasonable settlement, companies can prevent bridges from being burned.

Final Thoughts

Companies facing wage and hour class actions need to act quickly but tread lightly. The consequences of mismanaging these types of cases are disastrous, from huge financial losses to a stained brand image. Utilizing a Pick-Up-Stix campaign is an efficient way to ensure that operations are minimally affected and that the cost of settlements is as low as possible. If your company is facing a wage and hour lawsuit, seek legal advice to determine if this risk management technique is right for you.