Don’t Wait Too Long: Defending Against Baseless Wage Disputes

What happens when a former employee from the distant past suddenly claims they weren’t paid properly? Employers have to know they won’t be hassled by disgruntled former employees indefinitely. Idaho law protects businesses from stale claims—former employees cannot sleep on their rights forever. 

The case of Litster v. Litster Frost Injury Lawyers PLLC is an example of disgruntled former employees learning the hard way that they cannot wait forever before bringing wage claims. In this instance, not only did the former employees lose their case, but they were ordered to pay their former employer’s attorneys’ fees for bringing a case that was both too old and too weak.  

The Litster Case in a Nutshell 

To summarize Litster v. Litster Frost Injury Lawyers PLLC, there had been issues building and tensions rising over many years within the law firm, which culminated in internal implosion. Long after the dust settled, four former employees sued their employer for unpaid wages that the employees believed they were owed. One of the former employees also - mistakenly - believed he had a contract entitling him to the firm’s profits. He did not. 

The court reviewed the case and ruled that the claims were filed too late and the claims for firm profits were baseless. The one-year statute of limitations and the inefficient documentation protected the employer from paying the wages profits. Rather than having an enforceable employment contract they simply had an “agreement to agree” which did not hold up in court. 

Lessons For Employees – Why Timing Matters 

Understand the Statute of Limitations

The statute of limitations is the specific amount of time given to file a claim. Once the hard deadline is passed, even valid claims lose the right to file legal action. These time limits vary by the kind of claim being brought. 

In Idaho, the statute of limitations for some kinds of wage claims is one year. This means an employee, or former employee has 12 months to the day from the time the wages were owed to make a claim. This means that employees must raise their claims immediately, not lie in the weeds only to surprise their former employer years later. 

The employees in the Litster v. Litster Frost Injury Lawyers PLLC case show what to avoid. They waited too long to pursue their claims and as a result, the Idaho Supreme Court ruled that their claims were “time-barred.” They also brought contract claims where there was no contract. Even if their claims had been justifiable, the time limit prevented them from even being considered. 

Employees Need to Avoid the Risks of Waiting Too Long

Delaying action can cause irretrievable loss. It is best to proactively seek payment to prevent:

• Lost Claims: If you wait longer than the statute of limitation, your claim is automatically dismissed. 
• Lost Evidence: Emails, pay stubs, and other proof of evidence fade over time. Witnesses also forget, making them less reliable for testifying in your favor. 
• Lost Leverage: Employers are far less likely to settle once a claim is time-barred.
• Lost Interest: Owed wages could have earned interest in your account. Conversely, unpaid wages might force you into debt, costing you in interest payments.

Lessons For Employers – Avoiding and Defending Wage Disputes 

Clear Contracts are Non-Negotiable

Lawsuits can be expensive, but the Litster case shows that sometimes Employers must step up and defend their businesses and current employees from baseless threats. 

For Idaho Employers:

• Do not enter employment agreements. Idaho is a right-to-work state. Agreements that aren’t necessary should be avoided.
• If an employer needs an employment agreement - either to attract elite talent or for other business reasons, be sure to hire legal counsel to help draft enforceable employment agreements that include clear terms for wages, bonuses, and expense reimbursement.
• Do not allow former employees to use the legal system to extort rights they do not have. Stand up to baseless claims. 

Prevent Future Wage or Salary Disputes with Legal Counsel 

McFarland Ritter Law Firm specializes in contract law, employment law, and wage dispute defense. We help employers:

• Draft clear, enforceable contracts.
• Defend against baseless wage claims.
• Ensure policies and documentation protect your business.

• Employees: If you think you’re owed wages, don’t wait—take action today.
• Employers: Proactively safeguard your rights by ensuring your contracts and policies protect you and your employees.

Contact McFarland Ritter Today. We proudly serve Boise, Meridian, Nampa, Caldwell, Eagle, Kuna, Emmett, and beyond in the Treasure Valley, Idaho.