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).

BizKeys.com does not imply, assert or warrant in any way regarding the accuracy, completeness, or adequacy of the information contained in or linked to this web site. In that legal advice must be geared to the specifics of each situation or case, and realizing that laws are constantly changing, you must understand that information contained within this web site is not intended as legal advice or to replace the need for reputable legal counsel.