Steven Muscatello, an employment law attorney in Gunster's West Palm Beach office, wrote about the recent increase in pay practices audits by the U.S. Deparment of Labor in an article published in the Daily Business Review.
According to the article, Muscatello indicates that, rather than wait for an unannounced visit by the Department of Labor, employers can conduct their own internal audits as part of a larger discussion they should have about wage and hour compliance.
Here are four key questions he says should be included as part of such an internal audit:
- Employee or contractor? How a company determines this classification matters. Misclassification may result in liability for unpaid wages and/or taxes.
- Hourly or salary? Again, how this is decided is important; misclassification may result in the payment of back wages and fines.
- Accurate, detailed timekeeping systems? Accuracy is a must; Muscatello even offers a best practices tip.
- Federal contracts? For companies doing business with the government, there are certain pay practices requirements to meet.
Read the article for more details: Business leaders: Check your pay practices before government does (Daily Business Review, 7/16/15) - subscription required
Steven Muscatello is an employment lawyer at Gunster who helps employers navigate the growing web of federal, state and local workplace laws and regulations. He routinely advises employers on issues relating to government investigations, employee complaint procedures, medical leaves, disability accommodations, employee compensation, hiring and firing of employees, background checks, independent contractor issues and noncompete and nondisclosure agreements.
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