Five Employee Complaints Led to $215,000 in Wage Liability: Why Employers Should Conduct Self-Audits
Five employee complaints triggered an investigation by the California Division of Labor Standards Enforcement (DLSE) that ultimately resulted in more than $215,000 in wage liability—an outcome that illustrates why employers should periodically conduct wage-and-hour self-audits. Many employers assume that if payroll is running smoothly and employees are being paid on time, their wage-and-hour practices must be complian t. Unfortunately, wage-and-hour laws are highly technical, and even well-intentioned employers can get them wrong. We recently heard from a prospective client who learned this lesson the hard way. What began as complaints from a few employees quickly turned into an extensive investigation that expanded far beyond the original complaint. Situations like this illustrate why conducting a periodic wage-and-hour self-audit can be one of the most effective ways to identify compliance issues before regulators do. When a Small Complaint Becomes a Big Problem The employer contacte...