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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Employment Law
Satisfied Customers: 111682
Experience:  20+ Years of Employment Law Experience
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I am A CPA in Long Island who has a client that is being audited

Customer Question

I am A CPA in Long Island who has a client that is being audited and investigated for OT issues due to a complaint from a former employee who was paid off the books. The client was visited by the Labors standards division on June 26 2015. She interviewed all of the employee's about their employment, which included the off the books employees> the employer has maintained time records showing the daily and weekly hours worked and amounts paid. The company's actual PR filings do not include the employees she interviewed. Should we provide the time records and our calculations of the OT due. Is the purpose of the audit to make sure the employees are paid the OT due or can issue be pursued as a criminal matter. I await your reply.
Submitted: 1 year ago.
Category: Employment Law
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only. The issue could be pursued criminally, but in 99% of the cases it is an administrative violation of the Fair Labor Standards Act and it is going to come with fines and up to 3 times the overtime due to the employees. It behooves the employer to provide a detailed record of all employees and their hours worked and payments paid to show that overtime was paid properly for all employees and also to show no employee worked off the clock (which are the two main violations the Department of Labor is looking for). The employer is required to keep these records, so you need to go through them and make a spreadsheet showing each employee and hours worked and showing they were paid for all hours worked plus overtime for any hours worked over 40 in a week. If there were mistakes and OT is due, show it to them as well, because generally their calculations are way over what is actually due and you would reduce the fines and also show that any non-payment of overtime was a mistake and inadvertent and not intentional, which reduces the damages to 2 times the amount of overtime due the employees.