Many companies balk at the notion that their policies, procedures, and compliance with wage and hour laws may place them at significant legal and financial risk. However, as we have discussed before, companies house a wide array of data that is typically produced in discovery during litigation. This data can be, and is, used to determine liability and calculate related damages for noncompliance with various wage and hour laws at the state and federal levels. Companies should know what information is in their data warehouse, identify potential risks, and take actionable steps to minimize or eliminate any regulatory or statutory violations before litigation begins. Regular payroll audits are the key to this endeavor.
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