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Wage And Hour Audit

Wage and Hour Audit

Definition

An independent review (typically conducted by an attorney so that the results of the review remain privileged) that seeks to determine whether, for payroll purposes, the employees of a business are properly classified as either "exempt" (and thus not eligible for overtime pay) or "nonexempt" (and thus eligible for overtime pay).

Wage and hour audits apply the provisions of both the federal Fair Labor Standards Act (FLSA) and state wage and hour laws in making such determinations.

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