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.