Many companies mistakenly believe that audits are the result of an employee complaint. While that may sometimes be true, the reality is that the California Department of Labor and the United States Department of Labor routinely perform random audits of companies (including small businesses) to ensure compliance with wage and hour laws, unemployment insurance laws, and to ensure proper classification status. Companies that do not retain an audit attorney place themselves at an extreme disadvantage before the audit has even begun. In order to avoid penalties from the California Department of Labor Standards Enforcement, the United States Department of Labor or other state or federal agencies, companies should be prepared with accurate information and documentation.

During a government audit, our Firm analyzes appropriate records and information to ensure that your company’s rights and privileges are fully protected and provides only what is required by law to successfully complete the audit and reduce any potential audit liability. Once the audit is complete, PKWH will work with your company to ensure that you will be prepared for any future compliance audits.

  • A comprehensive internal audit should cover all of the following:

  • Recruitment and Hiring Policies and Practices;

  • Assignments, Promotions, Transfers, and Evaluation Policies and Practices;

  • Existence and Components of Training Programs;

  • Wage and Hour Compliance;

  • Leaves of Absence Policies and Practices;

  • Trade Secret and Confidential Information Protections

  • Record Keeping and Responsibility;

  • Communication of Policies and Practices;

  • Employment Handbook and Written Policy Review; and

  • Individual Employment Contracts.