Let us help you prepare for a Wage and hour Investigation. We will:
- Review Employee Classifications
- Ensure all employees are correctly classified as exempt or non-exempt.
- Double-check job duties and salary thresholds to confirm exemption status.
- Assume employees are non-exempt unless proven otherwise.
2. Audit Timekeeping and Payroll Records
- Verify that time tracking systems accurately record hours worked.
- Confirm that overtime pay is calculated correctly for non-exempt employees.
- Maintain records for at least two years, as auditors typically review this period.
3. Check Labor Law Postings
- Make sure all required labor law posters are up-to-date and visible in common areas.
4. Organize Documentation
- Collect and organize wage records, pay stubs, time sheets, and employment contracts.
- Prepare for the initial management interview by reviewing policies and procedures.
5. Conduct Internal Audits
- Perform regular internal audits to catch misclassification or pay errors early.
- Use a checklist to review:
- Employee classifications
- Overtime calculations
- Recordkeeping practices
6. Train Supervisors and HR Staff
- Educate managers on FLSA rules, especially regarding breaks, overtime, and off-the-clock work.
- Ensure HR understands how to respond during an audit.
7. Prepare for the Audit Visit
- Designate a private interview room for the auditor.
- Have a point person ready to communicate with the Department of Labor (DOL).
- Be cooperative but cautious—only provide requested documents.
- Misclassifying employees as exempt
- Failing to pay overtime correctly
- Incomplete or inaccurate time records
- Not posting required labor notices