The number of wage and hour collective and class action lawsuits is rising dramatically. During a recent two-year span, filings of multi-plaintiff wage and hour lawsuits increased 70 percent. In addition, the U.S. Department of Labor is increasing its budget for enforcement efforts in this area.
In this legal environment, even employers who are unaware of improper wage and hour practices in their operations face exposure to potentially great liability stemming from such actions as inadequate timekeeping procedures, the misclassification of workers and insufficient meal and rest breaks.
Wage and Hour audits are a prudent and cost-effective first step in identifying and correcting potential problem areas. They may also provide useful defenses when facing these lawsuits. Through years of experience, Kilpatrick Townsend’s Labor and Employment team has developed resources and processes that allow us to work collaboratively and efficiently with employer personnel to perform audits that fit within today's more constrained legal budgets.
During an audit, firm attorneys analyze timekeeping systems, review employee classifications for compliance with federal and state law, determine whether independent contractors are appropriately classified and assist with corrective measures. Because our team also has significant experience handling wage and hour lawsuits, we have particular insight into the areas of most concern when conducting an audit.