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Case Study: Protecting a Beloved Local Business Through Early, Efficient Resolution

Joy Einstein, Shareholder, Employment and Labor Law

Client
A neighborhood-favorite bakery and coffee shop owned by a kind, community-minded family. The business is known for its welcoming atmosphere and loyal customer base.

Challenge
A former employee filed a lawsuit alleging unpaid overtime, asserting she was owed six figures in unpaid wages. For a small business operating on tight margins and committed to serving its community, the prospect of protracted litigation threatened to siphon time, attention, and resources away from daily operations and growth.

Approach
From day one, the strategy centered on two objectives: reduce exposure and disruption, and keep the owners focused on running their business. The legal workstream emphasized rapid fact development, targeted risk assessment, and strategic negotiation. By quickly assembling the relevant payroll and scheduling records, clarifying the factual and legal issues, and assessing potential damages exposure grounded in the applicable wage-and-hour framework, the matter was positioned for early, pragmatic discussions. Communication with opposing counsel was professional and firm, with a clear message: the bakery was prepared to defend itself, but preferred a fair and prompt resolution that reflected the realities of the claim.

Outcome
The case settled for less than one quarter of the amount alleged, even before the defendants were required to file an answer to the complaint. This early resolution avoided the cost, burden, and uncertainty of discovery and motion practice, contained potential reputational risk, and enabled the bakery to maintain operational focus.

Impact on the Business
The owners were able to stay on the floor and with their team—serving customers, managing inventory, and planning for busy weekends—while the legal strategy advanced behind the scenes. By resolving the dispute swiftly and cost-effectively, the business preserved cash flow, minimized distraction, and sustained the warm, community-first reputation that keeps customers coming back. The outcome reflected disciplined advocacy, practical problem-solving, and a commitment to protecting what the owners value most: their people, their customers, and their craft.

Why It Matters
Wage-and-hour disputes can be complex and costly, particularly for small businesses where every hour and dollar count. An early, data-driven approach that couples rigorous legal analysis with focused negotiation can substantially reduce liability and litigation expense. Most importantly, it can keep leadership focused on their mission rather than on court deadlines.

Key Results

• Settled for less than a quarter of the amount demanded
• Resolution achieved before an answer was filed
• Litigation distraction and costs significantly reduced
• Business continuity and community goodwill preserved

What the Client Experienced
Clear guidance, practical recommendations, and a steady hand at each inflection point. The legal strategy was crafted to achieve a fair outcome while minimizing operational disruption, allowing a beloved local business to keep doing what it does best.

Author
Joy Einstein advises employers on their most vital workforce-related issues—from workplace harassment, misconduct, compensation and leave policies, to union organization, collective bargaining and dispute resolution. Clients rely on her to design practical, tailored solutions, guide them on employment-law compliance, draft and review handbooks and employment policies, and serve as outside general counsel when needed. Whether avoiding litigation or defending it before federal and state agencies and courts, Joy brings clarity, responsiveness and strategic insight to help organizations maintain productive, legally sound workplaces.

About Shulman Rogers 
Shulman Rogers is a full-service law firm with more than 100 attorneys offering business, litigation, real estate and personal legal services. Headquartered in Potomac, Maryland, the firm serves clients throughout the Washington, D.C. metropolitan area and nationwide. Known for its deep experience, practical approach and commitment to client success, Shulman Rogers partners with clients at every stage of growth.