Quick Answer: How Do I Prepare For A DOL Audit?

What are the penalties for violating FLSA?

It is a violation to fire or in any other manner discriminate against an employee for filing a complaint or for participating in a legal proceeding under FLSA.

Willful violations may be prosecuted criminally and the violator fined up to $10,000.

A second conviction may result in imprisonment..

What are the 3 types of audits?

What Is an Audit?There are three main types of audits: external audits, internal audits, and Internal Revenue Service (IRS) audits.External audits are commonly performed by Certified Public Accounting (CPA) firms and result in an auditor’s opinion which is included in the audit report.More items…•

How long does a labor board investigation take?

7 to 14 weeksTypically, a decision is made about the merits of a charge within 7 to 14 weeks, although certain cases can take much longer. During this period, the majority of charges are settled by the parties, withdrawn by the charging party, or dismissed by the Regional Director.

How do you conduct a wage and hour audit?

Wage and Hour Self-Audits ChecklistPreserve the Attorney-Client Privilege/Work Product. … Evaluate Employer’s Wage and Hour Policies and Procedures. … Ensure Employer Corrected Previously Identified Shortfalls. … Confirm Accuracy of Employee Classifications. … Evaluate Independent Contractor Classifications. … Review Employer Internship Programs.More items…•

Is there a statute of limitations on back pay?

The time limit, also called the “statute of limitations,” for most California wage and hour violations must be filed within three (3) years from the date of the most recent violation. Back pay violations that are based on breach of contract claims must be filed within 2 or 4 years.

What does the DOL audit?

During a Wage and Hour Division audit, the DOL investigator will review payroll, employment records, and overall employee rights in the workplace. … After the investigation, the auditor will determine whether there has been a failure to maintain correct records or any other DOL violations by the employer.

How do you survive a DOL audit?

How to Survive a DOL AuditContact the auditor to find out specific information about the audit. … Gather the records in accordance with guidance provided by the auditor. … Designate one or two company representatives to work with the auditor. … During the audit, be courteous to and cooperative with the auditor.More items…•

What happens if a company violates labor laws?

Potential penalties of breaking federal labor laws Employers can face severe penalties and fines for violating federal labor laws. Employers may even be required to pay an employee back pay. If the employee was fired for wrongful reasons, the employer may have to reinstate that person as an employee.

What is a wage and hour audit?

Accordingly, a wage and hour audit, when done properly with legal counsel, provides employers the opportunity to receive legal advice and direction regarding wage and hour laws and regulations, which may then provide the employer with a good faith defense in subsequent litigation.

How long does a payroll audit take?

about one yearRegardless of the reason behind the audit, an IRS agent will examine your business records and take a look at the duties of the workers in question, among other things, to establish the accuracy of your reporting. Payroll audits can about one year to complete in full.

Is overtime after 8 hours or 40 hours?

Employee Overtime: Hours, Pay and Who is Covered. The Fair Labor Standards Act (FLSA) states that any work over 40 hours in a 168 hour period is counted as overtime, since the average American work week is 40 hours – that’s eight hours per day for five days a week.

What triggers a DOL audit?

The most common triggers for DOL audits are: Participant complaints – If any of your employee benefits plan participants reach out to the DOL with complaints about potential ERISA violations, your plan is likely to be subject of an audit.

How far back can a DOL audit go?

When conducting an audit, Department of Labor wage and hour auditors typically inspect employer payroll records for the past two years, reviewing records of both current and former employees.

How do I get a payroll audit?

Use the following steps to get started on your payroll audit process.Look at the employees listed on your payroll. Review your employees listed on your payroll. … Analyze your numbers. … Verify time is correctly labeled. … Reconcile your payroll. … Confirm tax withholdings, remittance, and reports are accurate.

How often do unemployment audits happen?

Q How often can I be audited? A You can be audited once every 24 months.