March 7, 2024

Best Practices: Wage and Hour Self-Audit, Part 2

In this second in our two-part series on wage and hour compliance, we address critical aspects of compliance for every employer’s operational playbook.

Timekeeping Practices

Employers must scrutinize their timekeeping systems, particularly in jurisdictions like California where rounding employees’ time is prohibited. Ensuring time is recorded accurately to the minute is essential for compliance.

 Meal and Rest Period Policies

It’s imperative that meal and rest period policies are not only documented in the employee handbook but also communicated regularly. Reminding employees of their rights ensures these breaks are taken, promoting well-being and compliance.

Manager Training on Break Administration

Managers should receive training on administering meal and rest breaks effectively, including steps to take when breaks are missed.

Tracking Paid Time Off

The documentation and tracking of vacation, paid sick leave, or PTO must be meticulous. Accurate record-keeping of paid time off is essential

Paycheck Deductions

All deductions from an employee’s paycheck must be scrutinized to ensure they are legally permitted, protecting the employer from potential disputes and legal challenges.

Reimbursement of Business Expenses

Employers must ensure that employees are reimbursed for all necessary business expenses, such as uniforms, mileage, and cell phone use. This practice is not only fair but also mandated by law in many jurisdictions.

By addressing these areas, employers can reduce the risk of litigation and foster a positive workplace culture.