MoneyWise Solutions has performed detailed compliance audits for many areas of employment compliance. The audits are designed to assist in moving policies to full compliance, without the intrusion of an agency investigation due to disgruntled employee complaints. The most common areas for compliance issues being raised are FLSA (Fair Labor Standards Act) and EEOC (Equal Employment Opportunity Commission) for Title VII violations.

Both of these areas can result in the company being pitted against large federal agencies with large enforcement budgets and authority:

 

FLSA (Fair Labor Standards Act)

Typically, companies have policies and practices that violate the basic provisions of the FLSA. The federal guidelines primarily focus on record keeping, and required payment of overtime premium pay. Our experience shows that Wage and Hour Division Investigators will only allow about 10% of most companies’ workforce as exempt from timekeeping and payment of overtime premium pay without specific exemptions being properly applied. The FLSA audit considers proper application of these exemptions and how polices and practices may need to be adjusted for full compliance.
Sample Audit Topics
  • Review of current practice for FLSA record keeping
  • Application of Wage and Hour exemptions to current or future employees
  • Recommendations for policies and practices to move toward full compliance
  • Manager training and compensation planning
Sample Audit Questions
  • List of employees that are paid a regular salary and do not receive overtime premium pay.
  • Review in detail all on this list that exceed 10% of the total workforce.
  • List the exemptions that are currently used.
  • Available exemptions which may be implemented with some correction or communication.

EEOC (Equal Employment Opportunity Commission) Title VII Enforcement
This set of guidelines extends coverage to the majority of most workgroups, only white males under the age of 40, who are not veterans, and are not disabled are covered. Tracking this information is required for some employers, and preferred for most employers. Usually the "real" numbers work in favor of the employer, so maintaining detailed records of applicants and advertisements can make a strong case for compliance. Absence of these types of records can imply guilt if a claim has been filed. Having proper policies and practices in this area of employment is critical for reducing liability exposure.
Sample Audit Topics
  • Listing of policies which are needed for liability management
  • Review of current policies
  • Suggested language updates
  • Suggestions on initial responses to "problem employees" that are in protected classes
Sample Audit Questions
  • Do you have contracts or revenue generated directly or indirectly from federal or state agencies?
  • Have you bid for business from Fortune 500 companies or local, state, or federal agencies in the past 4 years?
  • Does your current workforce represent the available workforce in your local area?
  • Have the managers been formally trained to handle employee claims of harassment or discrimination?

 

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