The Department of Labor continues to aggressively enforce the FLSA, and the plaintiff's bar remains aggressive in filing class and collective actions alleging violations of the FLSA and state wage and hour laws. Employers defending these actions face potentially significant legal and financial liability. For example, in 2012, one employer paid $99 million to settle a case involving allegations that employees were misclassified as exempt from overtime pay. Given the potential for significant liability, employers should consider reviewing their internal wage and hour practices to:

For guidance on how to conduct an internal wage and hour audit and how to respond to problems uncovered during the audit, see Practice Note, Conducting an Internal Wage and Hour Audit.

Employers may evaluate several different issues during an internal wage and hour audit, depending on a variety of factors, such as the employer's industry, the type of workers employed and the reason for the audit. Common areas of review, however, include:

Practical Law Company has several resources that help employers and their counsel understand the requirements and obligations imposed on employers by the FLSA and state wage and hour laws and how to comply with those requirements and obligations. For more information, see the following resources: