Fair Labor Standards Act (FLSA) compliance audit
The Fair Labor Standards Act, or FLSA, sets standards for full and part-time employees related to minimum wage record keeping, youth employment and overtime pay. The Department of Labor’s Wage and Hour Division enforces FLSA and has the power to investigate the practices, policies and procedure of employers and interview employees to determine whether every aspect of their business is compliant. Because the FLSA can be complicated to apply and is considered highly subjective, many employers are using audits to ensure they follow this important law. Failure to comply can result in thousands of dollars in fines and well as back wages. A single-plaintiff FLSA lawsuit could cost six figures. However, many of these cases are brought as collective actions by large groups of employees, which means they can be very costly.
FLSA compliance audit services from Strategic HR Solutions, LLC
Here is a look at our FLSA compliance audit offerings.
FLSA Position Audits
Position audits for the FLSA look at the positions paid on a salary basis within your organization that are designated as FLSA-exempt. Although most salaried employees are considered exempt, there are some important exceptions that you need to be aware of. We will review and analyze the responsibilities and duties of exempt employees and provide you with recommendations on correcting any positions that are not properly classified.
FLSA compliance audits
The most common type of FLSA audit we carry out is a compliance audit. This entails reviewing all your documentation, policies, practices and procedures to ensure that you are fully compliant. We will thoroughly review the main components of FLSA, including:
Minimum wage
Overtime pay
Youth employment standards
Record keeping, including payroll records related to:
Time cards
Work schedules
Daily and weekly regular wages
Weekly overtime wages
Hourly pay rates
Wage deductions and additions
We will also take a closer look at the following areas:
An organizational overview of the managerial roles and reporting relationships of the positions we assess
Current job descriptions and existing classifications for defined roles
The compensation levels for all roles within the organization, including salary, bonuses and commissions
The reasons for the audit, including any past or present official audits by the Department of Labor
Our team will provide you with an in-depth analysis and advice on correcting any areas of noncompliance that we identify.
The benefits of FLSA audits from Strategic HR Solutions, LLC
Your organization can benefit in the several ways from conducting regular internal FLSA audits, including:
Preventing penalties for noncompliance, which could include damages, back wages and legal fees
Ensuring that employees you consider exempt officially meet the criteria
Reducing the chances that your employees will file complaints with the Wage and Hour Division
Avoiding lawsuits filed against your organization on behalf of employees who were subjected to violations while employed by you.
Call: 812-318-0629
Email: info@strategic-hrsolutions.com
Joe Boone, MBA, SPHR, SHRM-SCP, CPC is the CEO and Chief Ethics and Compliance Officer of Strategic HR Solutions, LLC. A contributing expert to numerous Linkedln training events, he has authored over 350 articles on Linkedln and has been a featured speaker at numerous SHRM events nationwide.
In addition to serving as a Marine Corps Officer for 20 years, he has worked in various areas of human resources management since 1995.
Strategic HR Solutions, LLC has been certified by the Department of Veterans Affairs as a veteran-owned small business and provides local businesses with strategic human resources support and advice with a wide range of virtual and onsite HR solutions to meet their immediate and long-term needs.
Their team of talented professionals are considered by many of their clients to be subject matter experts in the areas of human resources, employee relations, performance management, leadership, compensation and benefits, diversity and investigations.
Joe and his team publish a weekly blog on their website regarding HR News and Views that may be of interest to local business owners and anyone else with a passion for Human Resources.
Visit their website at www.strategic-hrsolutions.com for more information.
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