Audit every position against the DOL duties tests (executive, administrative, professional, computer employee, and outside sales exemptions) and the current salary threshold to confirm correct FLSA classification.

Confirm that all exempt employees are paid on a salary basis of at least the DOL minimum salary threshold ($684/week as of current regulation) and that no improper deductions have been made that could jeopardize the exemption.

Compare written job descriptions to the primary duties employees actually perform on a day-to-day basis to ensure the claimed exemption aligns with DOL duties tests rather than job titles alone.

Maintain written records explaining which specific FLSA exemption applies to each exempt position, including the duties test criteria met, to support the classification in the event of a DOL audit.

Review all independent contractor arrangements using the DOL economic reality test to determine whether workers should be reclassified as employees under the FLSA.

Verify that employees classified under the highly compensated employee (HCE) exemption earn at least the required annual compensation threshold and customarily perform at least one exempt duty.

Verify that every non-exempt employee's regular rate of pay meets or exceeds the current federal minimum wage of $7.25 per hour, and apply the higher state or local rate wherever applicable.

Ensure tipped employees receive at least the FLSA minimum cash wage ($2.13/hour) and that tips plus cash wages equal or exceed the full federal minimum wage, applying the tip credit provisions correctly.

If employing workers under 20 at the youth subminimum wage or workers with disabilities under a Section 14(c) certificate, confirm all DOL requirements and limitations are satisfied.

For employees paid on a piece-rate, commission, or other non-hourly basis, calculate the effective hourly rate for each workweek to confirm it meets or exceeds the applicable minimum wage.

Maintain a current schedule of all state and local minimum wage rates in jurisdictions where employees work and ensure payroll applies the highest applicable rate for each employee.

Confirm that all non-exempt employees receive overtime pay at one and one-half times their regular rate of pay for every hour worked beyond 40 in a single workweek, as defined by the FLSA.

Ensure the regular rate includes all forms of compensation required by FLSA, such as shift differentials, non-discretionary bonuses, and commissions, excluding only those payments specifically excluded by statute.

Establish a fixed, recurring 168-hour (seven consecutive 24-hour) workweek for each employee or group and ensure the workweek is not changed to avoid overtime obligations.

Record all hours that constitute compensable work under FLSA, including time spent on donning and doffing required gear, mandatory training, travel between job sites during the workday, and waiting time that is engaged.

If using the fluctuating workweek method or Belo plan for calculating overtime, verify that all DOL conditions are met including the fixed salary requirement and employee understanding of the arrangement.

Review time records to ensure all non-exempt employees are accurately recording start times, end times, and meal breaks, and that no off-the-clock work is being performed or encouraged by supervisors.

Confirm that payroll systems do not automatically deduct time for meal periods unless employees are fully relieved of duties, and that rounding practices comply with FLSA neutral rounding rules.

Keep all records required by 29 CFR Part 516 for at least three years, including employee name, address, date of birth, sex, occupation, hours worked each day, total hours each workweek, regular rate of pay, total wages, and deductions.

Preserve basic employment and earnings records, wage rate tables, and records of additions to or deductions from wages for at least two years as required by the FLSA recordkeeping regulations.

Display the current DOL "Employee Rights Under the Fair Labor Standards Act" poster (WH Publication 1088) in a prominent place at each establishment where employees can readily observe it.

If using electronic timekeeping or payroll systems, verify that the system captures all required data fields, prevents unauthorized alterations, and produces records that can be made available to DOL investigators upon request.

Maintain a written record of the analysis supporting each exempt classification decision and document any reclassifications, including the effective date and reason for the change.

Preserve all documents related to any FLSA complaints, DOL investigations, or wage and hour litigation for the applicable statute of limitations period, typically two years or three years for willful violations.

Obtain and retain proof of age (such as a birth certificate or age certificate issued by the DOL) for all employees under 18 to demonstrate compliance with FLSA child labor provisions.

Ensure that 14- and 15-year-old employees work only during permitted hours (no more than 3 hours on school days, 8 hours on non-school days, and 18 hours in a school week) and outside of school hours as required by FLSA.

Verify that no employee under 18 is assigned to any of the 17 Hazardous Occupation Orders designated by the Secretary of Labor, and that 14- and 15-year-olds are limited to occupations permitted under Child Labor Regulation No. 3.

Compare federal FLSA child labor provisions with applicable state laws and apply whichever standard provides greater protection to the minor employee, including stricter hour limitations or additional prohibited occupations.

Schedule and perform regular self-audits of wage and hour practices at least annually, using DOL compliance assistance resources and checklists to identify and correct potential violations before they result in enforcement action.

Provide training to all supervisors and managers on overtime eligibility, proper timekeeping practices, prohibition of off-the-clock work, and the consequences of FLSA violations including liquidated damages and willful violation penalties.

Create an accessible internal complaint mechanism that allows employees to raise FLSA-related concerns without fear of retaliation, and ensure all complaints are investigated promptly and documented thoroughly.

When compliance gaps are discovered, calculate and pay back wages owed, correct the underlying practice, and consider whether voluntary disclosure to the DOL through the Payroll Audit Independent Determination (PAID) program is appropriate.

Monitor DOL rulemaking, opinion letters, and federal court decisions affecting FLSA interpretation, and update company policies, pay practices, and training materials accordingly within a reasonable timeframe.