Employee Audits – Do You Know the Best Practices?

The Pittsburgh Post-Gazette recently reported that employee wage and hour audits are on the rise. With the boom of shale companies entering the region earlier this decade, the pay practices of many businesses have been examined by Wage and Hour Division of the Department of Labor.

According to Dan Doherty, Assistant District Director at the Department of Labor’s Wage and Hour Division in Pittsburgh, “any industry patronized by oil and gas companies in the Marcellus and Utica shales” are under scrutiny.

The Post-Gazette reports, “Over the past three years, the department has investigated 395 companies in southwestern Pennsylvania and West Virginia, assessing more than $10 million in back wages, civil penalties and liquidated damages. Of that, it has collected more than $3 million.” And, “The number of firms audited by the Labor Department for such violations has gone up each year and is on pace to set a record high in 2015.”

What can companies do to try to be in compliance? Our Labor and Employment Practice Group has written several articles over the past few years that address all of these issues.

Carl Hellerstedt wrote two articles on how the Department of Labor’s Wage and Hour enforcement is focusing on shale employers. He provides a list of several things employers can do when facing an ongoing initiative. Click here and here to read the details.

Additionally, Pete Rich outlines what employers can do when faced with a “Fair Day’s Pay” initiative. Click here to read that article.

If you have any questions regarding a Department of Labor audit, or any labor and employment law question, please contact us.

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