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Wage and Hour, Self Audit

Prepared by: Morris Jennings, Wage and Hour Consultant, (Over 25 years experience as a Wage and Hour Investigator), Toll -Free : 1-866-895-FLSA (3572) OVERVIEW This self audit guide is designed and organized to lead you through the same steps that a DOL Wage and Hour investigator would likely take. Additionally, suggested steps and tips are geared to help you in the discovery of dubious or noncompliant areas that many investigators might overlook. Failure to be thorough will leave you vulnerable in the event DOL sends an experienced and meticulous investigator, or a plaintiffs' attorney files suit on behalf of employees. The focus of this guide is FLSA. However, most employers are also subject to one or more additional laws that are enforced by the Wage and Hour Division. You are encouraged to examine your practices and policies related to any of those laws that are applicable. FLSA - areas to be examined Coverage of FLSA provisions Employment relationship (e.g., whether "independent contractors" should be classified as employees) Exemptions o "White collar" (including outside sales and computer specialists) o Other exemptions Records, including timekeeping procedures Hours worked (whether all compensable time is credited) Overtime compensation - methods of calculating and whether there are questionable practices Minimum wage - whether practices exist that might result in deficiencies o Employee expenses (uniforms, safety gear, tools, equipment and its maintenance, etc.) o Tipped employees - inadequate tips received, failure to conform to limitations regarding tip sharing or pooling. etc. Child labor When should a self audit be conducted? Subsequent to FLSA amendments or revision of certain regulations When potentially violative practices have been brought to your attention After management changes have occurred, especially if there is a new CEO, CFO, or human resources manager Otherwise, every two or three years Not "etched in stone" — each case is different To view the entiriety of this powerful self audit and many more, become a member of BizKeys

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