In the past, the Department of Labor Wage and Hour Division (WHD) would commonly randomly select employers for compliance audits with the provisions of the Fair Labor Standards Act (FLSA). Random audits have all but ended for a variety of reasons. In recent years, virtually all WHD investigations have resulted from employee complaints. Referrals by other federal agencies or WHD prioritizing a particular industry or geographic area also account for a small number of audits. However, random wage and hour audits may soon be in the picture again.
The Biden administration has pledged to aggressively enforce workplace laws and regulations. FLSA wage and hour violations are among the most common employer errors in the workplace. Now is the time for employers to take the necessary steps to ensure their compliance.