BizKeys Wage and Hour Expert: Morris Jennings
b) Reasons to Conduct a Self Audit
Self Audit Guide Part 2
- It is generally less expensive to find and correct deficiencies than to wait for DOL to do it for you.
- The self-audit procedure enables you to prepare for an eventual DOL investigation by becoming more knowledgeable of the FLSA and of your compliance practices.
- Applying the FLSA to real-world employment scenarios is far from an exact science; mistakes happen, and there are probable violations to be found.
- Preparing for the self audit encourages you to research the current application of FLSA standards and to discover subtle changes that have occurred in the statute or regulations.
- In the event of future litigation to recover unpaid wages, your self audit might be treated by the court as a good faith effort to comply with the FLSA, thus possibly avoiding a finding of “willful” violations.
- A self audit will be helpful in determining the types of FLSA training needed by your managers.
- Self audits often uncover unnecessary practices that are costly (e.g., paying for activities that need not be treated as hours worked or computing overtime wages incorrectly – paying a higher overtime premium than required by the FLSA).
Morris can be contacted at Morris@FLSA-SCA.com or (toll-free) 866-895-FLSA (3572).
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