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How to Protect Your Business and Meet Wage and Hour Compliance Requirements

Wage and hour issues are some of the most frequent, expensive, and challenging employer compliance problems. In order to withstand a Department of Labor Wage and Hour Division investigation, complaint wage practices and classifications are your first and best defense. From wage concepts such as minimum wage and overtime to relevant state and federal wage and hour rules, business owners and HR professionals need to be informed and up to date to protect their business.

In Ethan Allen’s Wage and Hour Checklist, we outline the wage issues and concepts you should understand including payment of wages, exempt versus non-exempt, wage deductions, off the clock work, travel time pay, and more. While our wage and hour checklist does not cover every wage and hour violation, it gives you a general idea of what to look for during an internal audit. If you find that your business has practices which violate compliance in any of these areas, you’ll want to discuss these issues with your employment counsel and take steps to address the problems.

Here are a few quick ways to find out if your business has compliant wage practices:

  • Make sure all non-exempt employees receive at least the relevant minimum wage for all hours worked.
  • Secure and maintain signed timesheets from all non-exempt employees verifying their work hours and retain such timesheets for at least 3 years or longer.
  • Ensure that employees are properly classified as either W-2 employees or 1099 independent contractors in accordance with the IRS and EEOC guidelines.


Ready to see the full list of tips and start your wage and hour compliance audit? Get your copy of Ethan Allen’s Wage and Hour Checklist now.


    Looking for additional HR advisories and resources? Check out our other guides.

    New York State Workplace Compliance Guide

    COVID Pay Programs Advisory

    HR Employment Law Evaluation