Survey: Audits Up for Wage-and-Hour Violations

One in five employers has been audited at least once for violating the federal wage-and-hour law, according to a recent survey by Business and Legal Reports Inc.


Advertisement


Click Here FRx Software's comprehensive training curriculum is designed to teach you the skills you need to do your job more effectively. You can choose from any array of courses and delivery methods - including virtual courses on the Web - that accommodate any learning requirement or schedule. Earn valuable CPE credits - learn more now!


FRx Software Home Product Information
FRx Express Product Demo
Webcasts Customer Testimonial Video



Constant internal oversight of pay practices can lower your chances of a Department of Labor (DOL) audit or an employee lawsuit, says Susan Prince, J.D., managing editor of BLR. Internal audits are especially important now, since Congress changed the overtime-exemption rules of the Fair Labor Standards Act last year.

In fact, DOL has estimated that more than half of employers have incorrectly classified employees under the law.

The BLR survey showed that 15 percent said they've been audited once; another 5 percent said they've been audited between two and five times. Seventy-nine percent said they've never been audited.

Prince advised employers to make sure that employees are properly classified, and that their job descriptions are accurate. Workers who are incorrectly classified as exempt from overtime pay can file a complaint with the Labor Department and be entitled to back wages. In fact, the Labor Department last year collected $165 million in retroactive pay from employers who violated the Fair Labor Standards Act.

Prince advises employers to pay any past overtime due to employees right away – it will be less costly in the long run than paying them through a DOL settlement procedure.

If DOL audits your workplace, here's what to expect: a DOL representative will conduct interviews at the company, make sure the required posters are hung, and possibly examine the time clocks. Up to three years of your wage and hours records may be examined.

Last, Prince tells employers to cooperate if an employee decides to file a complaint. Retaliation is prohibited by law.

BLR, which publishes two websites geared to human resources professionals HR.BLR and Compensation.BLR, gathered their survey information from about 400 companies of various sizes across the country.

You may like these other stories...

From May 20-23, the Association for Accounting Marketing (AAM) held its annual conference. Frequent contributor Sally Glick picked up some ideas that she will be sharing with us in the coming days, as she has done in...
Success, for a practitioner in a busy CPA firm, requires the ability to handle multiple tasks effectively. To get everything done, CPAs typically track their agenda with a "to do" list or other open-item systems to...
Everyone loses clients. You've seen the statistics. Clients and heirs often change accountants, attorneys, and advisors after a death or divorce. That's understandable. What about ongoing relationships when the...

Upcoming CPE Webinars

Jul 16
Hand off work to others with finesse and success. Kristen Rampe, CPA will share how to ensure delegated work is properly handled from start to finish in this content-rich one hour webinar.
Jul 17
This webcast will cover the preparation of the statement of cash flows and focus on accounting and disclosure policies for other important issues described below.
Jul 23
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.