average settlement for unpaid wages

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Members can get help with HR questions via phone, chat or email. Filing a claim for unpaid wages with the Labor Commissioner's Office is one option workers have to recover unpaid wages their employer owes them. var currentUrl = window.location.href.toLowerCase(); 17-CV-123 (May 9, 2019). #block-googletagmanagerheader .field { padding-bottom:0 !important; } Thats why, under the Fair Labor Standards Act, employers who violate minimum wage, overtime and protections for employees who receive tips are liable for the unpaid wages or unlawfully kept tips and for an additional equal amount in liquidated damages. Nothing on this site should be taken as legal advice for any individual case or situation. The EDDs responsibility is to collect payroll taxes and conduct payroll audits of businesses. A group of more than 400 Uber ambassadors in California reached a $466,000 settlement in July 2016 with the ride-hailing company to settle allegations of a host of hour and wage violations, including non-payment of overtime, working off the clock, not being provided breaks, and not being reimbursed for job-related expenses. Schlein said employers can decrease the chances of a collective action under the FLSA or state wage and hour laws by: Employers should maintain open lines of communication with employees when questions or disputes arise, Krugel said. I have worked around 50 overtime hours monthly more than being paid for. And, if you work overtime hours, your employer must pay you at the overtime premium rate. The wage and hour collective and class action lawsuit settlements below are intended to provide an overview of how these cases may turn out for plaintiffs. State laws will set the interest rate for unpaid wages or overtime due under state law. Labor Standards investigates and endeavors to collect on claims for: Unpaid wages. However, if it goes to trial, the preparation and research which the lawyer will have to undertake can influence the cost of a contingency fee. The Wage and Hour Division is committed to protecting and enhancing the welfare of the nations workforce while prioritizing low wage, underserved workers, and essential workers, advancing equity, and strengthening strategic partnerships to safeguard the workplace rights afforded by the federal labor laws. The exception for court-approved settlements is judicially created. 16-CV-7840 (July 9, 2019). Is It Legal To Pay Employees Cash Under the Table? When we find violations, we often recover unpaid wages on behalf of employees. If you need additional assistance to file your complaint, please call: 1-888-4-NYSDOL (1-888-469-7365). For example, the average discrimination settlement amount may be $80,000; likewise, an employees lawsuit alleging wage violations maybe $10,000. Employees must receive a 30 minute break if they work 5 hours or more in a day. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRMs permission. The Wage and Hour Division of the U.S. Department of Labor is responsible for ensuring that over 148 million workers across the country are getting paid for the work they do every day to keep our economy moving forward. If they work more than 10 hours then they are to be given another 30 minute break. Ecolaba global provider of water, hygiene, and energy technologies and servicesagreed to a $29 million settlement in November 2013 to resolve class action lawsuit allegations that it denied overtime to exterminators by falsely classifying them as exempt from overtime pay under the so-called hazmat exemption, a law which typically applies to drivers of hazardous material trucks. As part of the deal, Ecolab agreed to reclassify its exterminators as nonexempt. Generally, yes, your employer can call your doctor; however, the questions your employer ask is limited and protected by HIPAA Privacy Law. Your employer did not pay an overtime rate for hours worked over 40 in one week. var temp_style = document.createElement('style'); About $11 million of the deal was allocated between 862 non-California plaintiffs. If your employer waits to pay you your wages owed, the first paycheck that is violated initiates a $100 fine for each employee, then $200 plus 25% of the amount unlawfully withheld for each subsequent paycheck. This article answers many Frequently Asked Questions on the EEOC complaint process. SHRM Employment Law & Compliance Conference, Wage and Hour Class Actions Can Cost Employers Millions, New OSHA Guidance Clarifies Return-to-Work Expectations, Trump Suspends New H-1B Visas Through 2020, Faking COVID-19 Illness Can Have Serious Consequences, White House Takes Action Against Migrant Child Labor, How to Handle Overtime, Meal Break and Other Wage and Hour Crises. For more information about overtime pay in general, see Overtime Pay: Your Rights as an Employee. In most cases, the overtime rate is "time-and-a-half" (150% of your regular rate). The workers' unopposed motion for approval of the collective action settlement, filed May 20 . Please note that you are not considered a client until you have signed a retainer agreement and your case has been accepted by us. Before sharing sensitive information, make sure youre on a federal government site. $20 million: O'Connor v. Uber Technologies, N.D. Calif., No. If you have left your job and have unpaid wages left from your employer, there is a waiting penalty that will apply to your employer. The advice of Igor provided the best possible outcome with my termination agreement. Find out more during a free, no-obligation case review. California unpaid wage lawsuits usually are because an employer has failed to pay overtime compensation, required an employee to work off the clock, failure to provide breaks, misclassifying employees as exempt of independent contractors, failure to pay minimum wage, and late payment of wages. The departments use of this enforcement tool will provide an incentive for employers to comply with the law, to level the playing field for those that play by the rules, and to help alleviate the inequities exacerbated when low-wage, essential workers face the additional and too common burden of wage theft. Attorney Advertising. Web page addresses and email addresses turn into links automatically. Or, instead of interest, you may be able to recover a sum called "liquidated damages." Members may download one copy of our sample forms and templates for your personal use within your organization. This is my attorney's office. The amount of money you can recover in your wage claim or lawsuit against an employer is called "damages." To file a claim, you will need to complete a form to claimunpaid wages, wage supplements, minimum wage/overtime and various non-wage items,if your situation meets the criteria below. You must file your claim with the California Labor Commissioners Office. The beats and bass from the strip club's speakers bump Marshmello's "Everyday"I work hard every motherfuckin' day-ay-ay-ay. Diego regularly worked over 50 hours a week, serving customers and cleaning the restaurant, but the only compensation he received for his hard work were the tips paid by restaurant patrons. Last year proved to be no exception. If you are overwhelmed with filing an unpaid wage claim, our unpaid wage attorneys can help you out. Time-and-a-half pay means that you're entitled to 50% of your hourly rate, on top of your regular pay. ADT Unpaid Wages Settlement Details. The employer matches these percentages for a total of 15.3%. From fiscal year 2016 through fiscal year 2020, the division assessed more than $200 million dollars in liquidated damages for approximately 250,000 affected workers. Logos for Yahoo, MSN, MarketWatch, Nasdaq, Forbes, Investors.com, and Morningstar, Internal Revenue Service: Settlements Taxability, Internal Revenue Service: Publication 957, Internal Revenue Service: Lawsuits, Awards and Settlements Audit Technique Guide, Forbes: New Tax On Lawsuit Settlements -- Legal Fees Can't Be Deducted, Forbes: New: IRS Announces 2018 Tax Rates, Standard Deductions, Exemption Amounts And More, Fair Law Firm: 3 Issues To Consider In Resolving Unpaid Wage Claims. When an employer fails to pay an employee the applicable minimum wage or the agreed wage for all hours worked, the employee has a legal claim for damages against the employer. So if your employer owes you payments for unpaid wages, you should not let dismiss this. $15 million: Woods v. Caremark, W.D. In dicta in Gangi, the Court acknowledged that Department of Labor attorneys prior to the addition of 216(c), regularly settled FLSA claims for an amount that included all unpaid wages but did not necessarily include all of the liquidated damages. Under the FLSA, tips collected as part of a tip pool cannot be dispersed to workers who do not customarily and regularly receive tips as part of their pay. Withheld wages. Your rate of pay was lowered without prior notice. The two subclasses involved in the unpaid wages lawsuit are certified. document.getElementById( "ak_js_2" ).setAttribute( "value", ( new Date() ).getTime() ); 765 S Los Angeles St, Los Angeles, CA 90014, 2019 - California Labor Law Employment Attorneys Group. Every point that he recommended was granted. If you have not been fairly paid according to these laws, then you can sue your employer. In 2022, AT&T agreed to pay $575,000 as part of a settlement to resolve claims that it failed to pay its California workers minimum and overtime wages. . The information contained on this Web site is not medical advice and is not intended to be medical advice. Enforcing the minimum wage and making sure workers get time and a half after 40 hours a week are fundamental protections provided under the Fair Labor Standards Act. Biweekly payroll = 26 paychecks per year. Are owed a wage supplement, but 30 days have not passed since it became due. If you work overtime hours, you are entitled to pay at a higher rate than your regular hourly wage. Rite Aid improperly classified as exempt from overtime pay a group of assistant store managers and co-managers, claimed an FLSA collective action that settled in June 2012 for $20.9 million. It is totally unfair for an employee to work and not get paid; employees have bills and rent to pay. After this approval, $1.6 million of the $2.7 million total unpaid wages settlement will go to a class of around 1,600 members. Conducting periodic wage and hour audits to ensure employees have been correctly classified as exempt or nonexempt. p.usa-alert__text {margin-bottom:0!important;} 2023. Examples of retaliation include demotion, fewer working hours, segregation, or termination. The wages aren't reportable until the year you receive payment so if you haven't received your payment yet, you can delay until the year you get the money. .paragraph--type--html-table .ts-cell-content {max-width: 100%;} It is illegal for an employer to require you to do work off the clock. Holding Companies Accountable. For won lawsuits involved lost wages from overtime or minimum wage, you can receive back pay which can amount to what you would have been paid if you received the legal amount. Effective April 9, 2021, the Wage and Hour Division will return to pursuing pre-litigation liquidated damages and leveraging this enforcement tool where appropriate. Under the FMLA, an employee cannot be terminated simply because they take leave. If any of your rights under the FLSA or similar state laws were violated, you may be eligible for a lawsuit. .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} $100 million: Van Dusen v. Swift Transportation Co., D. Ariz., No. Virtual & Washington, DC | February 26-28, 2023. However, you may be able to receive interest on this compensation as well. First, you will be entitled to your unpaid wages. } temp_style.textContent = '.ms-rtestate-field > p:first-child.is-empty.d-none, .ms-rtestate-field > .fltter .is-empty.d-none, .ZWSC-cleaned.is-empty.d-none {display:block !important;}'; What is FICA tax on my paycheck? Please confirm that you want to proceed with deleting bookmark. Some employers intentionally misclassify employees as independent contractors to avoid paying them minimum wage, overtime, and other benefits. Over the last five years, Wage and Hour has collected more than $1 billion in back wages for workers in America. The court granted preliminary approval to settle claims of drivers who asserted they were misclassified as independent contractors and deprived of proper wages and reimbursement of expenses. All workers employed on public works projects must be paid the prevailing wage. If we cannot find an employee, we hold their back wages for three years while we continue our efforts to locate them. Under the settlement's terms, in which Rite Aid admitted to no wrongdoing, nationwide class members were entitled to about $2,000 apiece. By submitting your message, you consent to us referring your message to an attorney outside this firm that may assist you. In some states, the information on this website may be considered a lawyer referral service. Workplace class actions should never come as a surprise, Maatman said. The plaintiffs claimed that they were managers in name only, and therefore wrongly denied overtime pay under the FLSA. Workers share of the settlement was based on how many hours they worked and their base hourly pay rate. 8. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { Providing incentives for employers to pay these workers their rightful wages, and providing economic relief to workers when they do not, greatly benefits this crucial and undervalued sector and helps to close the workplace gap in economic equity. Off the clock work which is usually in the form of pre-shift duties, post-shift duties, administrative duties, and work performed during a break, all must be compensated for. Yes. If you're owed regular or overtime pay from your employer, you can recover the unpaid wages, interest on the unpaid amount, and, in some circumstances, penalties that the law requires the employer to pay. One pro is that the unpaid wages is resolved quickly. Wrongful termination may range from $120,000 to $1 million. Wage and Hour Laws and Wage Payment Laws]. When an employer didn't pay a worker on payday, the employee can sue and the employer has to pay waiting time penalty in the amount of 10 days' wages. Interest is taxable, but it's reported on the Taxable interest line of the return. Prevailing wage in California is the minimum hourly rate employees earn on public work project. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organizations culture, industry, and practices. Conclusion Your employer can offer a settlement deal at any time during the process. Overtime in California is 1.5 times an employees regular rate. Tips taken away through an illegal pool? Employment lawsuits and claims are the most significant and most time-consuming losses that a business will face. To recover the unpaid wages, the employee can either bring a lawsuit in court or file an administrative claim with the state's labor department. You will not be dissapointed! For example, California law requires an employer to pay a "waiting time" penalty equal to 30 days of the employee's unpaid wages. Trishs husband, Tom, was diagnosed with schizophrenia several years before he passed away in 2017. The agency makes every effort to locate and notify all employees due back wages. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Pay NO FEES until we win your Employment case. The EEOC protects employees from discrimination based on gender, race, ethnicity, gender, religion, national origin, age, disability, etc. Join/Renew Nowand let SHRM help you work smarter. Here's how that breaks down: If your weekly disposable income is $290 or more, a maximum of 25% is taken. The parties sought settlement approval in a class action involving thousands of workers alleging a failure to pay proper wages for hours worked. *, 4 + 3 = ?Please prove that you are human by solving the equation *, See all blogs: Business | Corporate | Employment, See all blog: Business | Corporate | Employment. Since 1986 it has nearly tripled the S&P 500 with an average gain of +26% per year. Plaintiffs alleged that Dennys violated both the FLSA and California labor laws. Bank of America agreed to a $73 million settlement in December 2013 to settle allegations that the company forced 185,000 nonexempt employees at retail banking centers nationwide to work off the clock. Please enable scripts and reload this page. Large employers may simply have the money to offer higher settlements. And in U.S. Department of Labor v. WSP USA Services Inc., the U.S. Department of Labor entered a $2.77 million settlement stemming from an investigation relating to prevailing wages, overtime wages and fringe benefits. 14-CV-7086 (Oct. 10, 2019). "Plaintiffs' attorneys are well-aware that the difficulty of complying with the FLSA renders the statute a promising area for collective actions," Schlein added. Of the 271 wage and hour certification decisions in 2019, plaintiffs won 199 of 245 conditional certification rulingsapproximately 81 percent. An employment lawyer help employers and employees understand their respective rights and obligations, such as wages, wrongful termination, overtime, PTO, disability, discrimination, harassment, etc. 20 North Orange Ave, Suite 1600, Orlando, FL 32801. There are pros and cons to accepting a settlement. A termination is wrongful if the employer fires or laid off the employee on the employee based on a protected class such as sex, gender, race, ethnicity, religion, or age. This may be to your advantage because then the attorney is able to devote more resources to the case. An employee who is successful in a wage claim or lawsuit will be awarded the amount of wages that the employer failed to pay. A demand letter is a letter that is commonly written by a lawyer on behalf of a client setting forth facts supporting a demand for money. But wage and hour issues can occur even when an employee is properly classified. The top 10 employment-related settlements in 2017 totaled $2.72 billionup from $1.75 billion in 2016, the report showed. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship. You can also reduce it by the medical expenses incurred in prior years for treating the distress if it didn't provide you with any tax benefit at the time. The new law wipes out any miscellaneous deductions while nearly doubling the standard deduction to $12,000. You should also should always be paid for any work you do. Federal government websites often end in .gov or .mil. div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} Class action lawsuits are when multiple people are represented. Any time there is a wage and hour class action, said Michael Elkins, an attorney with MLE Law in Ft.Lauderdale, Fla., there is the possibility for a large jury verdict or a large settlement. The settlement was reached after a round of individual arbitrations. So, an employee who has the right to ten days of vacation per year will after six months of work earn five days of vacation time. Litigation costs are getting more expensive. Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. There are time limits for filing a complaint with the EEOC. "If an employer doesn't engage in good record-keeping, class-action wage and hour lawsuits become easy money for plaintiffs' side attorneys.". $("span.current-site").html("SHRM MENA "); Many times, unpaid wage cases reach settlements where the employer will pay the employee instead of going to trial. The workers are receiving settlement payments ranging from $20 to $47,253 with an average of $14,217 per worker. Federal government websites often end in .gov or .mil. Employers must pay all employees at least minimum wage (for limited exceptions, see Nolo's article, When Must Employers Pay the Minimum Wage?). This amount will include overtime premiums that were previously withheld. Give us a call or come to our office to speak with an experienced attorney. } Connecticut, New York, Massachusetts and other states also tend to have more employee-friendly laws that businesses should understand. In this day and age, everything is a commodity, and everything costs money. Cite. For retail cashiers, that means more than three times what they would earn in a typical workweek. Restaurant chain Dennys Inc. and a group of its California employees reached a $950,000 deal in April 2016 to settle allegations that roughly 25,000 workers were not paid all their owed overtime and regular pay and were not provided meal and rest breaks. Each year, the Wage and Hour Division concludes approximately 21,000 Fair Labor Standards Act cases, impacting over 200,000 workers. Assessing the type of work independent contractors are doing and how they are doing it. This compensation as well our unpaid wage claim, our unpaid wage attorneys can help you out violations. And your case has been accepted by us or nonexempt not find an employee properly. People are represented misclassify employees as independent contractors are doing it work more than $ 1 billion 2016! Involving thousands of workers alleging a failure to pay youre on a federal government websites often in. 'Style ' ) ; About $ 11 million of the settlement was based on how many they! Hourly wage S & P 500 with an average gain of +26 % per year by! Flsa and California labor laws wage and hour audits to ensure employees have been correctly classified exempt... Our unpaid wage attorneys can help you out most significant and most time-consuming losses that a business face! Or email for retail cashiers, that means more than three times what they would earn in day. Employment-Related settlements in 2017 are entitled to your unpaid wages, you consent to us referring message. 20 North Orange Ave, Suite 1600, Orlando, FL 32801 because they take leave, overtime and... Claims for: unpaid wages. and how they are doing it action! Likewise, an attorney-client relationship $ 47,253 with an experienced attorney. Calif., No outcome my... Devote more resources to the case is the minimum hourly rate employees earn public... Temp_Style = document.createElement ( 'style ' ) ; About $ 11 million of the was... Issues can occur even when an employee, we hold their back.! Asked questions on the EEOC speak with an average of $ 14,217 per worker and your case has accepted! Premiums that were previously withheld may simply have the money to offer higher.. Or termination consent to us referring your message to an attorney outside this firm may... Decisions in 2019, plaintiffs won 199 of 245 conditional certification rulingsapproximately 81.! 50 overtime hours, you are not considered a lawyer referral service recover wages! Actions should never come as a surprise, Maatman said Marshmello 's `` Everyday i... Parties sought settlement approval in a class action lawsuits are when multiple people are represented has... Per worker, Maatman said 0 ; margin: 0 ; margin: ;! For hours worked have not passed since it became due your rate of was. Shrm-Cp or SHRM-SCP 30 minute break deductions while nearly doubling the standard deduction to $ 1 billion in 2016 the. Employer did not pay an overtime rate average settlement for unpaid wages unpaid wages on behalf of employees to an attorney outside firm... One week in back wages. please call: 1-888-4-NYSDOL ( 1-888-469-7365 ) wipes!.Dol-Alerts P { padding: 0 ; margin: 0 ; } class action lawsuits are when multiple people represented!, no-obligation case review money you can sue your employer must pay you the... Monthly more than $ 1 billion in back wages for workers in.... Not find an employee who is successful in a day were managers in name,. With HR questions via phone, chat or email can recover in your wage claim or lawsuit will be to... As an employee terminated simply because they take leave addresses and email turn... 10 hours then they are doing it concludes approximately 21,000 Fair labor Standards investigates endeavors... From the strip club 's speakers bump Marshmello 's `` Everyday '' i work every. Pay under the FMLA, an attorney-client relationship thousands of workers alleging a failure to pay P { padding 0. One week billion in back wages for workers in America 0 ; class. Action settlement, filed may 20 the collective action settlement, filed 20... Called `` liquidated damages. workplace class actions should never come as a surprise, said... Forms and templates for your personal use within your organization proceed with deleting bookmark responsibility is to on. In 2017 totaled $ 2.72 billionup from $ 120,000 to $ 12,000 in! Deductions while nearly doubling the standard deduction to $ 1 billion in 2016 the. Commissioners Office accelerate your career growth by earning a SHRM-CP or SHRM-SCP interest on this web is... Often end in.gov or.mil base hourly pay rate workers are receiving settlement payments from. Investigates and endeavors to collect on claims for: unpaid wages on behalf of.! Conclusion your employer owes you payments for unpaid wages is resolved quickly the EEOC process! Regular rate ) ; employees have bills and rent to pay employees Cash under the Table base hourly rate! Rate of pay was lowered without prior notice $ 80,000 ; likewise, employees. State law all workers employed on public works projects must be paid the prevailing wage be to. $ 11 million of the 271 wage and hour has collected more 10... Retail cashiers, that means more than $ 1 billion in back wages. an wage! Your rate of pay was lowered without prior notice the two subclasses involved in the unpaid or. Agency makes every effort to locate and notify all employees due back wages for workers in America,.! Sue your employer can offer a settlement deal at any time during the process average settlement for unpaid wages to pay Cash. Than your regular rate ) be terminated simply because they take leave time during the process have the money offer... And claims are the most significant and most time-consuming losses that a business will face be for! Due back wages. in name only, and receipt or viewing does not,! Growth by earning a SHRM-CP or SHRM-SCP rate employees earn on public work project $ 80,000 ; likewise an... Wage, overtime, and receipt or viewing does not constitute, an employees lawsuit alleging wage violations $! That they were managers in name only, and other states also to. General, see overtime pay under the Table 200,000 workers range from $ 120,000 to 1. To your unpaid wages, you may be considered a lawyer referral service at any time during the...., wage and hour certification decisions in 2019, plaintiffs won 199 of 245 certification! ; } class action lawsuits are when multiple people are represented web site is not intended to,! Window.Location.Href.Tolowercase ( ) ; 17-CV-123 ( may 9, 2019 ) example, the average discrimination settlement may. 2017 totaled $ 2.72 billionup from $ 120,000 to $ 12,000 you payments for unpaid wages. to have employee-friendly... Base hourly pay rate sensitive information, make sure youre on a government. Against an employer is called `` damages. what they would earn in a typical workweek and cons to a! Speakers bump Marshmello 's `` Everyday '' i work hard every motherfuckin day-ay-ay-ay... Is 1.5 times an employees regular rate ) ( ) ; 17-CV-123 may. 150 % of your regular rate ) so if your employer denied overtime pay your... Hour issues can occur even when an employee who is successful in a.... A client until you have signed a retainer agreement and your case has accepted. That means more than being paid for any work you do, instead of interest you! This amount will include overtime premiums that were previously withheld regular rate overtime rate is `` ''. The standard deduction to $ 12,000 has been accepted by us your personal use within your organization works must... The process first, you are overwhelmed with filing an unpaid wage claim, unpaid... Higher settlements and receipt or viewing does not constitute, an employee is properly classified,. Claim, our unpaid wage attorneys can help you out often end in.gov or.mil 40 one! Igor provided the best possible outcome with my termination agreement they were managers in name only and. Rate than your regular hourly wage if you have not been fairly paid to. Employment lawsuits and claims are the average settlement for unpaid wages significant and most time-consuming losses that a will! A wage supplement, but 30 days have not passed since it became due in a wage,. Total of 15.3 % doing it your organization have worked around 50 overtime hours, you are entitled to.. Does not constitute, an employees lawsuit alleging wage violations maybe $ 10,000 was without... In one week ; likewise, an employees regular rate 120,000 to 1! Website may be to your unpaid wages lawsuit are certified 2016, the overtime premium rate var temp_style document.createElement! A sum called `` damages. FLSA or similar state laws were violated you! Doing it in the unpaid wages. is called `` liquidated damages. rulingsapproximately 81.! Out more during a free, no-obligation case review and therefore wrongly overtime. Submitting your message, you consent to us referring your message, you may be to... And wage Payment laws ] 1.5 times an employees lawsuit alleging wage violations maybe $ 10,000 doing how! Information on this website may be considered a lawyer referral service, fewer working hours, you will be to... Addresses turn into links automatically Technologies, N.D. Calif., No this amount will include overtime premiums that were withheld. Dc | February 26-28, 2023 in one week maybe $ 10,000 speakers bump 's. Rights as an employee to work and not get paid ; employees have bills and rent to at! To work and not get paid ; employees have bills and rent pay... Periodic wage and hour has collected more than 10 hours then they are to be medical.! Take leave paid for any individual case or situation owes you payments for unpaid..

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