Dol Audit

Written by Kimberly Clark
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The Department of Labor (DOL) is the government agency responsible for enforcing the regulations cited in the Fair Labor Standards Act (FLSA), which was passed to ensure that workers are equally treated and fairly compensated by their employers. The primary way the DOL enforces adherence to the FLSA guidelines is by randomly auditing an organization's activities. Occasionally the DOL will target a specific company or industry, but audits are generally spawned by a complaint filed by a disgruntled employee.

When the DOL decides to audit a business, it will send out a representative to review all the company or organization's financial records. The DOL has the right to examine all the organization's wage and hour information for the last three years. The representative will also check to make sure the business is visibly displaying the required DOL flyers and posters, which summarize the workers' rights.

What They're Looking For

One of the things the DOL auditor will be looking for is whether or not the company's filled positions have valid job descriptions and if those descriptions accurately describe the tasks being performed. Auditors will also want to make sure all workers have the proper skills necessary to perform their jobs. In addition, the auditor will probably want to verify that nonexempt employees are being properly paid for the overtime hours they worked.

In order to avoid the penalties associated with failing a DOL Audit, many install payroll software coded to handle the complexities of the FLSA regulations. The businesses might also contract with an independent audit firm to review their records and procedures. Both will assist them to flag and correct issues before the government is notified of them.

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