What is a Department of Labor Wage & Hour Audit?

The U. S. Department of Labor’s Wage and Hour Division ensures that employers comply with the Fair Labor and Standards Act. The Fair Labor and Standards Act states that all non- exempt employees should receive at least minimum wage compensation for all hours worked and overtime pay at a time and a half their regular hourly rate for all hours worked in excess of 40 hours. 

A wage and hour audit may be announced or unannounced and usually occurs as a result of an employee complaint.
The Department of Labor specifically targets businesses regarding the following:
• Failure to maintain records and overtime payment for non-exempt employees
• Salaried employees improperly classified as overtime exempt
• Unlawful wage deductions for items against employees
• Inaccurate payments to immigrant workers and minors who receive below minimum wage