6 Tips to Withstand a Department of Labor Audit

Apr 27, 2016

withstand a department of labor auditWage issues are some of the most frequent, expensive, and challenging employer compliance problems. Compliant wage practices and classifications are your first and best defense. In order to best withstand a Department of Labor audit or investigation, business owners and HR professionals must understand wage concepts such as the minimum wage and overtime and should be aware of all relevant state and federal wage and hour rules.

Here are 6 tips to help your business comply with wage and hour laws:

  1. Make sure all non-exempt employees receive at least the relevant minimum wage for all hours worked.
  2. Familiarize yourself with the overtime exemption criteria and remember that simply because an employee is paid on a salaried basis does not automatically disqualify the employee from entitlement to overtime compensation.
  3. Secure and maintain time sheets from all non-exempt employees verifying their hours worked. Retain such time sheets for at least three (3) years or longer under relevant state laws (it is 6 years in New York).
  4. Avoid prorating/reducing an exempt employee’s salary based on the quantity or quality of work performed, unless such a deduction is specifically permitted by law.
  5. Familiarize yourself with the meal, break, and lactation break laws that pertain to the states in which you employ personnel.
  6. Ensure that employees are properly classified as either W-2 employees or 1099 independent contractors in accordance with the IRS and EEOC guidelines.

For more information on how GTM helps businesses stay compliant with labor laws, contact us at (518) 373-4111.

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