FLSA Audit

FLSA Audit

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FAIR LABOR STANDARDS ACT COMPLIANCE

The Fair Labor Standards Act (FLSA) applies to virtually every employer.  Generally, the FLSA requires employers to pay a covered employee a regular hourly rate that is at least equal to the applicable minimum hourly wage.  Additionally, an employee who works more than 40 hours in a workweek must be paid a rate that is one and one-half times the employee's regular rate for all hours worked over forty.  An employer's failure to comply with the FLSA can result in substantial costs including payment of unpaid wages, liquidated damages, interest, attorney's fees, civil fines and criminal fines or imprisonment.  Accordingly, it is absolutely critical that an employer review his compliance with the FLSA.  The following audit is designed for that purpose.

FLSA GENERAL REQUIREMENTS

Does the Company have a workweek of seven consecutive calendar days?

Does the workweek comprise a total of 168 hours?

Does the Company pay a regular hourly wage rate at least equal to the minimum wage?

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