Wage and Hour Audit

Kathryn Carlson

To quickly audit your company’s Wage and Hour practice, answer the questions below. Are you uncertain of any of the answers? KPA offers free webinars on “Essential of Wage and Hour Law for Dealerships,” “Advanced Wage and Hour Law,” and “California Wage and Hour Law.” Download any webinar at http://www.kpaonline.com/news-and-events/webinars.html

• Have you classified all employees as exempt or nonexempt using an objective review of job duties? Exempt and nonexempt classifications are determined by job duties, not by pay method.
• Are you paying nonexempt employees overtime wages equal to 1½ times their regular hourly wage? This is the federal requirement; your state may require even more overtime or may calculate overtime based on hours worked by day, not by week.
• Are all your nonexempt employees recording all hours actually worked? Have them acknowledge either by a policy or include a statement on the timecard that confirms hours recorded as an accurate reflection of the actual hours worked.
• Are nonexempt employees taking breaks or meals at their desks or in their work areas? If they do any work during lunch, including answering the phone or completing training, they have to be paid.
• Are exempt employees docked for hours not worked within a workday? Be careful when docking exempt employees as you may jeopardize the exemption. Review your policy with an attorney or certified HR professional.
• Are you granting "comp time" in lieu of overtime? In the private sector, "comp time" is normally not an accepted substitute for overtime pay.