As new Fair Labor Standards Act (FLSA) regulations are introduced by the Department of Labor, it is essential that employers are able to interpret and accurately implement the guidelines in order to stay compliant and avoid enforcement actions, fines, and litigation. Exposing your organization to potential claims is a financial and reputational risk that should not be ignored.
PrideOne and the companies within the Pride Global network employ thousands of individuals in a wide variety of industries and roles across the country. These employees are on site at our client locations, but as the employer we are responsible for making sure all workers, including Independent Contractors (IC’s), are properly classified and paid in accordance with DOL regulations. This experience has allowed us to build up a wealth of expertise on best practices for classification and risk management from a FLSA standpoint.
An Employee Audit assesses the workers in question by examining their pay rate, pay type (salaried vs. hourly), and job description. The job description on record functions as a baseline – PrideOne will also reach out to the direct managers of the employees in question to validate that the description accurately reflects the way workers are actually spending their time.
Once accurate job descriptions are obtained, PrideOne would conduct a gap analysis between the descriptions and DOL guidelines to make a recommendation about changes needed, if any. Changes may need to be immediate or, in some instances, can be phased in over time.
A Contingent Labor Audit begins with the assessment of current rate card and bill rate practices for workers in a contingent labor program. Particular focus is placed on IT roles and daily rate consultants, if any. PrideOne will compare roles and rates with DOL and individual state guidelines and make recommendations if any changes should be made regarding rate practices and Exempt vs. Nonexempt classifications. As a final step, PrideOne will then conduct an audit of vendor records to ensure compliance on the part of the employers of the client’s contingent workers. Even if a client has properly classified and paid vendors for their employees, without visibility into the vendor pay records a client can still be at risk for a claim.