If a lot of people were abusing the system to get undue money from employers, knowing it would cost the employers far less to settle than to fight, then that's

If a lot of people were abusing the system to get undue money from employers, knowing it would cost the employers far less to settle than to fight, then that's obviously bad. However, this type of regulation seems like it now swings the entire system in favor of the employers rather than neutralizing the problem. In other words, people who actually were wrongfully withheld their just pay will now greatly fear losing even if they know they were wronged, and so the employers have less to fear by wrongfully withholding pay. It seems to me there should be a separate judgement as to whether or not the claimants accusations were fraudulant or malicious, separate from whether or not they lost the claim itself, before imposing this harsh penalty.