What should I expect from a Department of Labor Audit?

Is your company prepared for a Department of Labor (DOL) audit?

Are You Prepared for a DOL Audit? | SuretyHR

Like most things related to Human Resources, being proactive is always the best policy. Employers know that the U.S Department of Labor (DOL) can perform an audit at any time. Sometimes these audits are triggered by an employee complaint, but they can also occur in targeted low-wage industries such as agriculture, restaurants, garment manufacturing, guard services, day-care centers and hospitality to screen wage and hour violations. It is crucial for employers to understand the audit process so they can be prepared to handle the situation if it occurs. Below is a basic guide to help employers know what to expect in the event they are audited.

Will I Have Advance Notice of an Audit?

The DOL does not provide advance notice of an audit. If the DOL shows up to do one, employers may ask for time to gather their records. The amount of time granted to do so is at the discretion of the auditor.

Can I Find out Why the Business Being Audited?

Employers have the right to contact the auditor and ask for specific information regarding the audit. Employers should ask why the investigation is happening (overtime pay compliance, minimum wage compliance, exempt vs. nonexempt classification), the time frame for records requested by the auditor, and the names of the employees who may be interviewed.

What Records Will I Need to Provide?

Employers should gather the records requested by the auditor. In addition to those, employers should provide documentation of company compensation policies. Ensure that you keep records of any information provided, and do not provide anything the auditor does not ask for.

Can I Control Who the Employees Talk to?

Employers can designate certain employees like legal counsel or senior employees to work with auditors. In this instance, the employees will provide paperwork, documentation and coordinate employee interviews.

How should I behave?

Be courteous and cooperative. Offer a quiet place for the auditor to review the records.

Am I allowed to review the auditor’s findings?

Employers can ask for a summary of the investigation findings. If violations are listed, employers should consider seeking legal counsel prior to agreeing to a settlement.

What can I do to help prevent this?

  • Employers should conduct self-audits regularly, which consists of the following:
  • Reviewing job descriptions.
  • Studying the difference between federal and state laws and applying them properly.
  • Making sure FLSA classifications are proper.
  • Keeping accurate records of payroll.
  • Being consistent in policy.
  • Ensuring all records are correct.
  • Deciding how to address any areas of concern.

If you'd like an expert third party perspective, please reach out to Cris Board at Surety HR and find out how she can conduct an HR Audit for your business. Cris can be reached by filling out the form below, or calling 440-249-5688

Loading Form...
Loading Form...
Loading Form...
Loading Form...
Most Recent

Understanding At-Will Employment

By Surety HR
May 21, 2019 Category: At Will Employment, For Employers, Employee Handbook

What is At-Will Employment? At-will employment is a common law rule which means that an employer may terminate anytime for any reason with or without cause or notice for any reason by law or no reason at all. Too many Ohio employers rely on at will employment to terminate an employee without checking all of the facts and really taking it on a case by case basis. At-Will Employment and the BIG 3Exceptions for Ohio Employers Illegal Reasons for Termination For example, you can terminate an employee if they come into work with pink, blue, or any crazy colored hair but you cant for a social anxiety disorder, and it becomes a slippery slope if there are no performance issues. The employee that has the pink hair could hire an attorney and believe that she was fired because of her social anxiety disorder and not her hair. So, you havegot to be very careful. As an employer, you want to make sure that there are no illegal reasons for termination such as social anxiety disorders or any disabilities;

The Importance of Immediately Documenting Performance Problems

By Surety HR
May 10, 2019 Category: Performance Issues, Documentation

The importance of Ohio employers documenting their employees performance issues cannot be overstated. Too many employers rely on employment at will, and thats a dangerous position to take because the cost of turnover is so high. If an Employee Doesnt Know That Something is Wrong, They Cant Fix It If your employees dont realize that their performance is not up to standards or that certain behavior is bad, then they wont know to correct that issue. As an employer, you want to communicate that you want to better the employee and hopefully not have to terminate that employee in the cost of turnover so high. So they need to know that somethings wrong. No One Likes to be in Trouble Nobody likes to be in trouble, but they must know that if they are not meeting expectations or failing to comply, it will result in progressive discipline. As an employer, it is your responsibility to communicate and document the issue to allow your employee to understand that their actions, or lack thereof,

8 Reasons Your Business Needs an Employee Handbook

By SuretyHR
April 23, 2019 Category: Employee Handbook

We at Surety HR want to stress the importance of a well-written employee handbook. It helps both the employee and the employer. Some employers have conflicting views on whether or not to have a handbook. However, its in the best interest of both partiesto have a handbook. 8 Reasons to Have an Employee Handbook 1) First of all, it introduces employees to the organizations mission, vision, values, and culture which sets the foundation for how the employees fit in. 2) The second thing it does is that it communicates to the employees what is expected of them; the benchmarks, sets the tone for employees on safety, timekeeping, reporting, and so on. 3) The third thing is that it educates employees on what they can expect from management and leadership which helps eliminate confusion and inconsistencies. 4) A handbook also helps ensure that key company policies are clearly and consistently communicated as no policy is effective if its not practiced. 5) It showcases the benefits of the

Categories
For Employers (5)
HR (2)
PEO Advantages (2)
Employee Handbook (2)
Department Of Labor Audit (1)
Payroll (1)
Benefits (1)
401k (1)
Performance Issues (1)
Documentation (1)
At Will Employment (1)
+ Show More

SuretyHR-Logo

© , SuretyHR All Rights Reserved. Powered by Virteom Logo Virteom