FLSA / Wage & Hour Compliance Audit
Identify wage and hour violations before the DOL does — overtime, exempt status, meal breaks, and off-the-clock work
The Fair Labor Standards Act (FLSA) governs minimum wage, overtime pay, recordkeeping, and youth employment. With 5,704 new federal FLSA cases filed in 2025 alone, wage and hour violations remain one of the most common and costly compliance failures for businesses of all sizes. Performance West conducts comprehensive wage and hour audits covering overtime calculations, exempt vs. non-exempt classification, meal and rest break policies, off-the-clock work practices, and recordkeeping compliance. We review your payroll records, job descriptions, and employment policies to identify violations and provide a detailed remediation plan. Our audit covers federal FLSA requirements as well as applicable state wage and hour laws, which often provide greater protections than federal law. Texas employers face particular scrutiny from DOL audits, and our audits are designed to prepare you for regulatory review.
Risk if non-compliant
FLSA violations routinely result in class action lawsuits with back-pay plus liquidated damages (double damages), attorney fees, and DOL penalties. A single misclassification can cost $50,000+ per employee.
Potential penalties
- ⚠ Back-pay for up to 3 years of unpaid wages
- ⚠ Liquidated damages (double the back-pay amount)
- ⚠ Civil penalties up to $2,451 per violation
- ⚠ Willful violations: criminal penalties up to $10,000
- ⚠ Class action exposure for systemic violations
- ⚠ Attorney fees and court costs
What we deliver
- ✓ Review all employee classifications (exempt vs. non-exempt)
- ✓ Audit overtime calculation methods and accuracy
- ✓ Analyze meal and rest break policies and practices
- ✓ Identify off-the-clock work risks
- ✓ Review timekeeping and recordkeeping systems
- ✓ Assess state-specific wage and hour requirements
- ✓ Deliver detailed findings report with remediation steps
- ✓ Provide corrected classification recommendations
Frequently asked questions
How many employees can you audit?
Our base package covers up to 50 employees. For larger organizations, we provide custom quotes based on headcount and complexity.
Do you cover state wage laws too?
Yes. We audit against both federal FLSA and applicable state wage and hour laws, which may provide stricter requirements.
What records do you need from us?
We need payroll records for the past 12 months, job descriptions for all positions, your employee handbook, and any existing wage and hour policies.
Will this protect us from lawsuits?
While no audit can guarantee immunity from litigation, identifying and correcting violations proactively significantly reduces your exposure and demonstrates good faith.
Do you provide legal advice?
No. We provide compliance consulting and remediation recommendations. For legal matters, we recommend consulting with an employment attorney.
Ready to get started?
Contact us to discuss your compliance needs or request a quote.
Or call us: 1-888-411-0383