Conducting a Wage and Hour Audit: Eating the Elephant One Bite at a Time
Wage and hour violations are rarely intentional. They typically stem from common missteps such as outdated job descriptions, payroll errors, miscommunication, or genuine confusion about complex federal and state laws and regulations. So, as too many employers know, a wage and hour lawsuit or Department of Labor (DOL) investigation can hit a business out of the blue, often without prior notice. Such actions can cripple even a well-run organization due to stringent laws that impose heavy penalties and encourage collective and other actions with their provisions for recovery of extensive damages, including back wages, liquidated damages, and attorneys' fees. While many employers understand that a proactive wage and hour audit is the most effective way to reduce exposure to such an action, the prospect of conducting one may seem daunting, even to the most sophisticated HR professional. The good news is that an audit becomes more manageable when approached with clear objectives and disc...