Being an employer is no easy feat. Between the imposition of business regulations at the local, state and federal levels, legal obligations that differ from state-to-state, and ever-changing demands of employees and customers alike, the job of an employer is a challenge, to say the least.
Federal and state wage and hour laws are an area particularly rife with potential pitfalls for employers. These rules vary by jurisdiction, but typically provide employees the legal right to compensation if their employers fail to pay the minimum wage or overtime earnings, require work to be conducted "off the clock," overlook meal and/or rest breaks during the workday, or misclassify employees as independent contractors or as being otherwise exempt from wage and hour requirements.
When employers violate wage and hour laws, the financial implications can be severe. This is especially true to the extent workers may be able to litigate alleged violations of state and federal labor laws through wage and hour class action lawsuits or other collective actions.
Consequently, companies across industries should do all they can to ensure compliance with applicable wage and hour laws—this so as to avoid the possibility of legal exposure. They can do so by conducting comprehensive wage and hour audits.
A wage and hour audit consists of an inspection and review of a company's wage-and-hour practices and policies. Such audits are prophylactic when a company evaluates itself to...
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