Types of FLSA Audits: Position Audits and Compliance Audits

The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, record keeping, and youth employment standards affecting full and part-time employees. The Wage and Hour Division of the Department of Labor is entrusted to enforce the rules and regulations of the FLSA and has the authority to investigate an employer’s policies, practices, procedures, and other related documents, as well as interview employees to determine if the employer is in compliance with regulations. In order to ensure compliance, employers are encouraged to participate in internal FLSA audits. Knowledgeable employment law attorneys like those at Simon Paschal PLLC can help your organization complete position and compliance audits to ensure that your business is in line with all FLSA rules.

FLSA Position Audits

A position audit for the FLSA is a review of the employer’s positions that are paid on a salary basis and are designated as exempt from the FLSA. This type of audit includes a review and analysis of the duties and responsibilities of the employees designated as exempt. Once the review is complete, the reviewer performing the position audit can provide the employer with an analysis and recommendations as to what steps to take to correct any positions that may be improperly classified.

FLSA Compliance Audits

A compliance audit for the FLSA is a review of the employer’s policies, procedures, practices, and documentation to ensure that the employer is in compliance with the FLSA and its regulations. This includes a review of the minimum wage requirements, overtime pay, record keeping, and youth employment standards. Once the reviewer goes over the employer’s policies, procedures, practices, and documentation, he or she can provide a comprehensive analysis and recommendations on any requirements or regulations with which the employer may not be in compliance under current practices.

The Importance of FLSA Audits

It is important for every employer to conduct internal FLSA audits on a regular basis. These regular audits should make it unnecessary for employees to file complaints with the Wage and Hour division and prevent noncompliance penalties, which may include back wages, damages, and legal fees, from being assessed.  Finally, this practice may keep the Wage and Hour division from imposing its own audits on your organization or filing lawsuits against your business on behalf of employees who were subjected to violations while in your employment.

Talk to Our Office Today

Experienced employment law attorneys can help your organization conduct regular position and compliance audits. To speak with an employment lawyer about internal FLSA audits, contact Simon Paschal PLLC to schedule a consultation.


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