--- title: Audit Your Wage and Hour Compliance—Before Someone Else Does! --- [![logo-new-2](https://promotion-payroll-hr.pinnaclehro.com/hs-fs/file-420784457-png/images/logo-new-2.png)](http://www.pinnaclehro.com?hsLang=en-us) - [Paycheck Login](https://www.paycheckrecords.com/default.jsp) - [HR Login](http://www.thinkhr.com/hrhotline/login.php) - [Payroll Login](https://iop.intuit.com)  |  1-888-353-2976 - [Payroll](https://promotion-payroll-hr.pinnaclehro.com/employee-payroll-services-california?hsLang=en-us) - [Small Business Payroll Services](https://promotion-payroll-hr.pinnaclehro.com/payroll-services/small-business-payroll-processing-services?hsLang=en-us)![](https://promotion-payroll-hr.pinnaclehro.com/hs-fs/file-2100883184-jpg/images/payroll-small.jpg) - [Mid Size Business Payroll Services ](https://promotion-payroll-hr.pinnaclehro.com/payroll-services/mid-size-business-payroll-processing-services?hsLang=en-us)![](https://promotion-payroll-hr.pinnaclehro.com/hs-fs/file-2100883179-jpg/images/payroll-mid.jpg) - 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[Tweet](https://twitter.com/share) Employers face more vigorous enforcement of overtime and wage payment laws than ever before. Recently, the U.S. Department of Labor (DOL) has - added 350 new wage-hour investigators; - launched a campaign titled “We Can Help” to publicize its wage-hour enforcement initiative; and - begun to refer claimants to private lawyers through its hotline “Bridge to Justice” arrangement with the American Bar Association. Plaintiffs’ lawyers are energized to sue on wage-hour claims because the cases can be very lucrative. The result has been a deluge of headlines reporting six- and seven-figure payouts, even by some of the nation’s most sophisticated employers. What can your organization do to get ahead of this massive mobilization? The most effective course is to conduct an internal audit *before* the DOL shows up at your door. An audit will enable an employer to identify compliance concerns and change any practices that might present an unacceptable risk of liability. Many employers have historically misunderstood—and therefore misapplied—the overtime laws. Here are three examples of high-risk areas: 1. **Not counting all types of pay in calculating overtime. **Commissions, incentive payments, and certain bonuses often must be included when you determine the rate to be paid for overtime work, even if the incentive payment is monthly, quarterly, or annual. Calculating overtime pay based solely on the employee’s base pay will often violate the wage-hour laws. Wage-hour liability touches all industries. Employers in healthcare, insurance, banking, manufacturing, distribution, retail, and technology have faced high-profile cases involving huge liabilities due to the nuances of how the laws apply to people working in those industries. In the face of the unprecedented public and private resources now being committed to enforcing wage and hour obligations against employers, it is simply not prudent to assume that you’re in compliance. Many employers are completely unaware of the legal errors in their classification, timekeeping, and wage payment practices. But ignorance of this law is no excuse. A claimant need not prove intent in order to establish a violation and collect a recovery. Nor does an absence of employee complaints ensure clear sailing. The requirements of wage-hour laws cannot be waived by an employee’s expressed or silent acceptance of the pay arrangement. Another important benefit of an internal audit is the potential availability of a legal defense in the event of a future claim. If your wage-hour practices have been established in good-faith reliance on an opinion from legal counsel, you may be entitled to a good faith defense against all or a portion of potential liability. By: William Fallon Tags: [Uncategorized](https://promotion-payroll-hr.pinnaclehro.com/human-resources-articles/topic/uncategorized) ### Stay updated with the hottest and latest employment law and HR trends and topics ### Most Popular Blog Posts Areas We Serve - [Arizona Payroll Services](https://promotion-payroll-hr.pinnaclehro.com/payroll-processing-services-arizona?hsLang=en-us) - Phoenix   |   Scottsdale   |   Tucson   |   Mesa   |   Tempe   |   Glendale - [California Payroll Services](https://promotion-payroll-hr.pinnaclehro.com/payroll-processing-services-california?hsLang=en-us) - Long Beach   |   Oakland   |   Beverly Hills   |   Santa Barbara   |   Anaheim   |   Fresno   |   Santa Monica   |   Pasadena   |   Los Angeles   |   San Francisco - [California HR Mgmt Outsourcing](http://www.pinnaclehro.com/human-resources-hr-outsourcing-services?hsLang=en-us) - Long Beach   |   Oakland   |   Beverly Hills   |   Santa Barbara   |   Anaheim   |   Fresno   |   Santa Monica   |   Pasadena   |   Los Angeles   |   San Francisco - 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