Fair Labor Standards Act Checklist (FLSA)

Fair Labor Standards Act FLSA Compliance Checklist

1. Company Information

• Company Name
• Location
• Inspection Date
• Inspector Name
• Department/Unit

2. Employee Classification

• Exempt vs. Non-Exempt Status
  • Are employees correctly classified as exempt or non-exempt under FLSA guidelines?
  • Do HR review job duties to ensure they align with the classification?
  • Do you meet salary thresholds for exempt employees?

3. Minimum Wage Compliance

• Federal Minimum Wage
  • Do you pay all non-exempt employees at least the federal minimum wage?
• State Minimum Wage
  • Is the state minimum wage higher than the federal rate, and is it applied correctly?
  • Are tipped employees receiving the correct wage, considering the tip credit?

4. Overtime Pay

• Overtime Calculation
  • Do you pay overtime at 1.5 times the regular rate of pay for hours worked over 40 in a workweek?
  • Are all compensable hours considered when calculating overtime (e.g., on-call time, travel time)?
• Record of Overtime Hours
  • Does payroll department maintain accurate records of all overtime hours?
  • Are employees aware of the company’s overtime policies?

5. Child Labor Compliance

• Minor Employees
  • Do you employ minors according to FLSA age restrictions and hours limitations?
  • Are work permits or age certificates obtained and filed as required?
• Restricted Occupations
  • Do you restrict minors from working in hazardous occupations as defined by the FLSA?

6. Recordkeeping

• Timekeeping System
  • Is an accurate timekeeping system in place to track hours by non-exempt employees?
  • Do you maintain records for at least three years, as required by FLSA?
• Payroll Records
  • Does payroll department maintain payroll records that show employee names, social security numbers, work hours, wages, and other information?
  • Does payroll department document all deductions from wages properly and lawful?

7. Hours Worked

• Workweek Definition
  • Is the workweek consistently defined and applied in practice?
• Breaks and Meal Periods
  • Do you provide breaks and meal periods according to company policy and state laws?
  • Do you compensate employees for breaks shorter than 20 minutes?
• On-Call Time
  • Do you track on-call time properly and compensate if you require employee to remain on-site or nearby?

8. Deductions and Wage Payments

• Permissible Deductions
  • Are deductions from wages for things like uniforms, tools, or meals compliant with FLSA regulations?
  • Are deductions for damages or shortages compliant and not reducing wages below the minimum wage?
• Final Paychecks
  • Are final paychecks issued promptly according to federal and state laws?
  • Are all accrued benefits, such as vacation pay, included in final paychecks?

9. Compliance with State and Local Laws

• State-Specific Regulations
  • Are state-specific labor laws, such as wage notices or additional breaks, followed?
  • Are local wage ordinances, like city minimum wage laws, applied correctly?

10. Employee Training and Awareness

• Training Programs
  • Are employees trained on their rights under the FLSA, including minimum wage and overtime?
  • Are supervisors trained to understand and enforce FLSA compliance?
• Posters and Notices
  • Is the FLSA poster, “Employee Rights Under the Fair Labor Standards Act,” displayed prominently in the workplace?
  • Are employees aware of how to report FLSA violations?

11. Audit and Review

• Internal Audits
  • Are regular internal audits conducted to ensure ongoing FLSA compliance?
  • Are any discrepancies or potential violations promptly addressed?
• Third-Party Audits
  • Has the company considered using an external auditor to review FLSA compliance practices?

12. Final Sign-Off

• Compliance Certification
  • Has the checklist been completed and reviewed for accuracy?
  • Have all identified issues been resolved or addressed?
• Signatures
  • Inspector’s Signature
  • HR Manager’s Signature
  • Legal Department’s Signature (if required)

Using eAuditor Audits & Inspections for Fair Labor Standards Act Checklist

1. Create a Template or use existing Fair Labor Standards Act template: Open eAuditor Audits & Inspections and create a new template or use existing Fair Labor Standards Act based on the above checklist structure. Add each section, question, and response type accordingly.
2. Assign Responsibilities: You can assign specific sections of the checklist to different team members, such as HR, payroll, or department managers.
3. Attach Documentation: Use eAuditor Audits & Inspectio’s feature to attach relevant documents, such as copies of wage notices, payroll records, or employee training materials.
4. Set Up Reminders: Schedule regular inspections or audits, and set up reminders to ensure ongoing compliance.
5. Generate Reports: After completing the checklist, generate reports directly within eAuditor Audits & Inspections to document compliance efforts and share them with the relevant stakeholders.

This FLSA checklist will help ensure that your organization complies with federal labor standards, avoiding costly violations and ensuring fair treatment of employees.