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New Year's Resolutions: Don't Fail A DOL Audit

As we usher in a new year, businesses and employers are contemplating resolutions to enhance their operations and stay on the right side of the law. In the realm of labor and employment, one crucial commitment stands out: ensuring compliance with Federal Wage and Hour laws. Earlier in 2023, the DOL requested an increased budget in 2024 to hire more investigators and conduct more investigations for wage and hour violations, and with the current White House Administration’s position on such issues, employers should expect 2024 to be a year for increased DOL investigations in all areas and industries. A New Year’s resolution to avoid failing a DOL audit is essential for maintaining a healthy and legally sound workplace.

How to protect yourself?

A key preventive maintenance element is to have an internal wage and hour audit of your employees conducted under attorney-client privilege protection. This allows you to discover any discrepancies in wages and overtime and confirm that the business follows all of the necessary laws, before a DOL investigator comes knocking.

To properly protect your business from the fines and penalties that come from a DOL Audit, there are several items that your business can review to decrease the odds that an investigator will find a violation:

Employee Classifications:

Are your exempt employees properly classified as exempt? There are many different exemptions that can apply, but the proper application of these exemptions can be complicated, especially in the “gray” areas of many job positions. The most common exemptions are the White-Collar exemptions for Executive, Administrative, and Professional employees. A common challenge for businesses is the administrative exemption (Hint: having “administrative” in the job title is not enough).

Your business should analyze the written job descriptions of all of your exempt employees and compare them to the duties each employee actually performs. Have the duties changed? Do they supervise more or less employees? Do you have a written job description at all? These changes need to be considered before an investigator appears at your door.

Pay Practices:

Are you properly calculating applicable bonuses into your employees’ regular rate for overtime? Does your business require deductions from paychecks for uniforms or other costs? Are your employees taking the exact same lunch break every day because of automation in the time-keeping system? These are major red flags that the Department of Labor will identify and inspect, and so need to be reviewed internally to ensure compliance.

Required Documents:

Is your business maintaining the necessary documents? For example, payroll records must be retained for at least 3 years, while timekeeping records and records of deductions or additions to wages must be retained for at least 2 years. The business’s recordkeeping practices should be carefully audited and any changes should be considered in advance of any DOL audit, which can happen at any time.

Conclusion:

As businesses consider the opportunities of a new year, employers should make a resolution to prioritize Federal Wage and Hour compliance. Fostering a workplace environment that respects the rights and well-being of employees not only ensures legal compliance but also contributes to the overall success and sustainability of businesses. By seeking guidance and establishing a preventive maintenance program, employers can confidently navigate the intricate landscape of Federal Wage and Hour Laws, minimizing the risk of failing a DOL audit and the expensive penalties that come with such a result.

New Year's Resolutions: Don't Fail A DOL Audit

As we usher in a new year, businesses and employers are contemplating resolutions to enhance their operations and stay on the right side of the law. In the realm of labor and employment, one crucial commitment stands out: ensuring compliance with Federal Wage and Hour laws. Earlier in 2023, the DOL requested an increased budget in 2024 to hire more investigators and conduct more investigations for wage and hour violations, and with the current White House Administration’s position on such issues, employers should expect 2024 to be a year for increased DOL investigations in all areas and industries. A New Year’s resolution to avoid failing a DOL audit is essential for maintaining a healthy and legally sound workplace.

How to protect yourself?

A key preventive maintenance element is to have an internal wage and hour audit of your employees conducted under attorney-client privilege protection. This allows you to discover any discrepancies in wages and overtime and confirm that the business follows all of the necessary laws, before a DOL investigator comes knocking.

To properly protect your business from the fines and penalties that come from a DOL Audit, there are several items that your business can review to decrease the odds that an investigator will find a violation:

Employee Classifications:

Are your exempt employees properly classified as exempt? There are many different exemptions that can apply, but the proper application of these exemptions can be complicated, especially in the “gray” areas of many job positions. The most common exemptions are the White-Collar exemptions for Executive, Administrative, and Professional employees. A common challenge for businesses is the administrative exemption (Hint: having “administrative” in the job title is not enough).

Your business should analyze the written job descriptions of all of your exempt employees and compare them to the duties each employee actually performs. Have the duties changed? Do they supervise more or less employees? Do you have a written job description at all? These changes need to be considered before an investigator appears at your door.

Pay Practices:

Are you properly calculating applicable bonuses into your employees’ regular rate for overtime? Does your business require deductions from paychecks for uniforms or other costs? Are your employees taking the exact same lunch break every day because of automation in the time-keeping system? These are major red flags that the Department of Labor will identify and inspect, and so need to be reviewed internally to ensure compliance.

Required Documents:

Is your business maintaining the necessary documents? For example, payroll records must be retained for at least 3 years, while timekeeping records and records of deductions or additions to wages must be retained for at least 2 years. The business’s recordkeeping practices should be carefully audited and any changes should be considered in advance of any DOL audit, which can happen at any time.

Conclusion:

As businesses consider the opportunities of a new year, employers should make a resolution to prioritize Federal Wage and Hour compliance. Fostering a workplace environment that respects the rights and well-being of employees not only ensures legal compliance but also contributes to the overall success and sustainability of businesses. By seeking guidance and establishing a preventive maintenance program, employers can confidently navigate the intricate landscape of Federal Wage and Hour Laws, minimizing the risk of failing a DOL audit and the expensive penalties that come with such a result.

New Year's Resolutions: Don't Fail A DOL Audit

As we usher in a new year, businesses and employers are contemplating resolutions to enhance their operations and stay on the right side of the law. In the realm of labor and employment, one crucial commitment stands out: ensuring compliance with Federal Wage and Hour laws. Earlier in 2023, the DOL requested an increased budget in 2024 to hire more investigators and conduct more investigations for wage and hour violations, and with the current White House Administration’s position on such issues, employers should expect 2024 to be a year for increased DOL investigations in all areas and industries. A New Year’s resolution to avoid failing a DOL audit is essential for maintaining a healthy and legally sound workplace.

How to protect yourself?

A key preventive maintenance element is to have an internal wage and hour audit of your employees conducted under attorney-client privilege protection. This allows you to discover any discrepancies in wages and overtime and confirm that the business follows all of the necessary laws, before a DOL investigator comes knocking.

To properly protect your business from the fines and penalties that come from a DOL Audit, there are several items that your business can review to decrease the odds that an investigator will find a violation:

Employee Classifications:

Are your exempt employees properly classified as exempt? There are many different exemptions that can apply, but the proper application of these exemptions can be complicated, especially in the “gray” areas of many job positions. The most common exemptions are the White-Collar exemptions for Executive, Administrative, and Professional employees. A common challenge for businesses is the administrative exemption (Hint: having “administrative” in the job title is not enough).

Your business should analyze the written job descriptions of all of your exempt employees and compare them to the duties each employee actually performs. Have the duties changed? Do they supervise more or less employees? Do you have a written job description at all? These changes need to be considered before an investigator appears at your door.

Pay Practices:

Are you properly calculating applicable bonuses into your employees’ regular rate for overtime? Does your business require deductions from paychecks for uniforms or other costs? Are your employees taking the exact same lunch break every day because of automation in the time-keeping system? These are major red flags that the Department of Labor will identify and inspect, and so need to be reviewed internally to ensure compliance.

Required Documents:

Is your business maintaining the necessary documents? For example, payroll records must be retained for at least 3 years, while timekeeping records and records of deductions or additions to wages must be retained for at least 2 years. The business’s recordkeeping practices should be carefully audited and any changes should be considered in advance of any DOL audit, which can happen at any time.

Conclusion:

As businesses consider the opportunities of a new year, employers should make a resolution to prioritize Federal Wage and Hour compliance. Fostering a workplace environment that respects the rights and well-being of employees not only ensures legal compliance but also contributes to the overall success and sustainability of businesses. By seeking guidance and establishing a preventive maintenance program, employers can confidently navigate the intricate landscape of Federal Wage and Hour Laws, minimizing the risk of failing a DOL audit and the expensive penalties that come with such a result.

New Year's Resolutions: Don't Fail A DOL Audit

As we usher in a new year, businesses and employers are contemplating resolutions to enhance their operations and stay on the right side of the law. In the realm of labor and employment, one crucial commitment stands out: ensuring compliance with Federal Wage and Hour laws. Earlier in 2023, the DOL requested an increased budget in 2024 to hire more investigators and conduct more investigations for wage and hour violations, and with the current White House Administration’s position on such issues, employers should expect 2024 to be a year for increased DOL investigations in all areas and industries. A New Year’s resolution to avoid failing a DOL audit is essential for maintaining a healthy and legally sound workplace.

How to protect yourself?

A key preventive maintenance element is to have an internal wage and hour audit of your employees conducted under attorney-client privilege protection. This allows you to discover any discrepancies in wages and overtime and confirm that the business follows all of the necessary laws, before a DOL investigator comes knocking.

To properly protect your business from the fines and penalties that come from a DOL Audit, there are several items that your business can review to decrease the odds that an investigator will find a violation:

Employee Classifications:

Are your exempt employees properly classified as exempt? There are many different exemptions that can apply, but the proper application of these exemptions can be complicated, especially in the “gray” areas of many job positions. The most common exemptions are the White-Collar exemptions for Executive, Administrative, and Professional employees. A common challenge for businesses is the administrative exemption (Hint: having “administrative” in the job title is not enough).

Your business should analyze the written job descriptions of all of your exempt employees and compare them to the duties each employee actually performs. Have the duties changed? Do they supervise more or less employees? Do you have a written job description at all? These changes need to be considered before an investigator appears at your door.

Pay Practices:

Are you properly calculating applicable bonuses into your employees’ regular rate for overtime? Does your business require deductions from paychecks for uniforms or other costs? Are your employees taking the exact same lunch break every day because of automation in the time-keeping system? These are major red flags that the Department of Labor will identify and inspect, and so need to be reviewed internally to ensure compliance.

Required Documents:

Is your business maintaining the necessary documents? For example, payroll records must be retained for at least 3 years, while timekeeping records and records of deductions or additions to wages must be retained for at least 2 years. The business’s recordkeeping practices should be carefully audited and any changes should be considered in advance of any DOL audit, which can happen at any time.

Conclusion:

As businesses consider the opportunities of a new year, employers should make a resolution to prioritize Federal Wage and Hour compliance. Fostering a workplace environment that respects the rights and well-being of employees not only ensures legal compliance but also contributes to the overall success and sustainability of businesses. By seeking guidance and establishing a preventive maintenance program, employers can confidently navigate the intricate landscape of Federal Wage and Hour Laws, minimizing the risk of failing a DOL audit and the expensive penalties that come with such a result.

New Year's Resolutions: Don't Fail A DOL Audit

As we usher in a new year, businesses and employers are contemplating resolutions to enhance their operations and stay on the right side of the law. In the realm of labor and employment, one crucial commitment stands out: ensuring compliance with Federal Wage and Hour laws. Earlier in 2023, the DOL requested an increased budget in 2024 to hire more investigators and conduct more investigations for wage and hour violations, and with the current White House Administration’s position on such issues, employers should expect 2024 to be a year for increased DOL investigations in all areas and industries. A New Year’s resolution to avoid failing a DOL audit is essential for maintaining a healthy and legally sound workplace.

How to protect yourself?

A key preventive maintenance element is to have an internal wage and hour audit of your employees conducted under attorney-client privilege protection. This allows you to discover any discrepancies in wages and overtime and confirm that the business follows all of the necessary laws, before a DOL investigator comes knocking.

To properly protect your business from the fines and penalties that come from a DOL Audit, there are several items that your business can review to decrease the odds that an investigator will find a violation:

Employee Classifications:

Are your exempt employees properly classified as exempt? There are many different exemptions that can apply, but the proper application of these exemptions can be complicated, especially in the “gray” areas of many job positions. The most common exemptions are the White-Collar exemptions for Executive, Administrative, and Professional employees. A common challenge for businesses is the administrative exemption (Hint: having “administrative” in the job title is not enough).

Your business should analyze the written job descriptions of all of your exempt employees and compare them to the duties each employee actually performs. Have the duties changed? Do they supervise more or less employees? Do you have a written job description at all? These changes need to be considered before an investigator appears at your door.

Pay Practices:

Are you properly calculating applicable bonuses into your employees’ regular rate for overtime? Does your business require deductions from paychecks for uniforms or other costs? Are your employees taking the exact same lunch break every day because of automation in the time-keeping system? These are major red flags that the Department of Labor will identify and inspect, and so need to be reviewed internally to ensure compliance.

Required Documents:

Is your business maintaining the necessary documents? For example, payroll records must be retained for at least 3 years, while timekeeping records and records of deductions or additions to wages must be retained for at least 2 years. The business’s recordkeeping practices should be carefully audited and any changes should be considered in advance of any DOL audit, which can happen at any time.

Conclusion:

As businesses consider the opportunities of a new year, employers should make a resolution to prioritize Federal Wage and Hour compliance. Fostering a workplace environment that respects the rights and well-being of employees not only ensures legal compliance but also contributes to the overall success and sustainability of businesses. By seeking guidance and establishing a preventive maintenance program, employers can confidently navigate the intricate landscape of Federal Wage and Hour Laws, minimizing the risk of failing a DOL audit and the expensive penalties that come with such a result.

New Year's Resolutions: Don't Fail A DOL Audit

As we usher in a new year, businesses and employers are contemplating resolutions to enhance their operations and stay on the right side of the law. In the realm of labor and employment, one crucial commitment stands out: ensuring compliance with Federal Wage and Hour laws. Earlier in 2023, the DOL requested an increased budget in 2024 to hire more investigators and conduct more investigations for wage and hour violations, and with the current White House Administration’s position on such issues, employers should expect 2024 to be a year for increased DOL investigations in all areas and industries. A New Year’s resolution to avoid failing a DOL audit is essential for maintaining a healthy and legally sound workplace.

How to protect yourself?

A key preventive maintenance element is to have an internal wage and hour audit of your employees conducted under attorney-client privilege protection. This allows you to discover any discrepancies in wages and overtime and confirm that the business follows all of the necessary laws, before a DOL investigator comes knocking.

To properly protect your business from the fines and penalties that come from a DOL Audit, there are several items that your business can review to decrease the odds that an investigator will find a violation:

Employee Classifications:

Are your exempt employees properly classified as exempt? There are many different exemptions that can apply, but the proper application of these exemptions can be complicated, especially in the “gray” areas of many job positions. The most common exemptions are the White-Collar exemptions for Executive, Administrative, and Professional employees. A common challenge for businesses is the administrative exemption (Hint: having “administrative” in the job title is not enough).

Your business should analyze the written job descriptions of all of your exempt employees and compare them to the duties each employee actually performs. Have the duties changed? Do they supervise more or less employees? Do you have a written job description at all? These changes need to be considered before an investigator appears at your door.

Pay Practices:

Are you properly calculating applicable bonuses into your employees’ regular rate for overtime? Does your business require deductions from paychecks for uniforms or other costs? Are your employees taking the exact same lunch break every day because of automation in the time-keeping system? These are major red flags that the Department of Labor will identify and inspect, and so need to be reviewed internally to ensure compliance.

Required Documents:

Is your business maintaining the necessary documents? For example, payroll records must be retained for at least 3 years, while timekeeping records and records of deductions or additions to wages must be retained for at least 2 years. The business’s recordkeeping practices should be carefully audited and any changes should be considered in advance of any DOL audit, which can happen at any time.

Conclusion:

As businesses consider the opportunities of a new year, employers should make a resolution to prioritize Federal Wage and Hour compliance. Fostering a workplace environment that respects the rights and well-being of employees not only ensures legal compliance but also contributes to the overall success and sustainability of businesses. By seeking guidance and establishing a preventive maintenance program, employers can confidently navigate the intricate landscape of Federal Wage and Hour Laws, minimizing the risk of failing a DOL audit and the expensive penalties that come with such a result.