Which of the following can prompt an FLSA audit?

Which of the following can prompt an FLSA audit?

• A. Employee personnel complaints
• B. Profit margins exceeding expectations
• C. Changes in executive management
• D. Merger with another company

Answer: (A)

An FLSA audit can indeed be prompted by employee personnel complaints. When employees feel that their rights under the Fair Labor Standards Act (FLSA)—which governs minimum wage, overtime pay, recordkeeping, and youth employment—are being violated, they may file complaints with the Department of Labor or internally within their organization. Such complaints can lead to an investigation to ensure compliance with FLSA regulations. This systematic review aims to identify potential violations in wage and hour laws affecting employees. While profit margins, changes in executive management, and mergers can all be significant events in a company's lifecycle, they typically do not directly trigger an FLSA audit. Profit margins exceeding expectations may raise questions about compensation but lack the direct employee-driven concern that leads to an audit. Changes in management might influence company policies but do not inherently indicate a compliance issue. Furthermore, a merger might prompt a review of benefits and employment practices, but it is not a direct cause for an audit unless accompanied by specific employee complaints regarding pay practices.

An FLSA audit can indeed be prompted by employee personnel complaints. When employees feel that their rights under the Fair Labor Standards Act (FLSA)—which governs minimum wage, overtime pay, recordkeeping, and youth employment—are being violated, they may file complaints with the Department of Labor or internally within their organization. Such complaints can lead to an investigation to ensure compliance with FLSA regulations. This systematic review aims to identify potential violations in wage and hour laws affecting employees.

While profit margins, changes in executive management, and mergers can all be significant events in a company's lifecycle, they typically do not directly trigger an FLSA audit. Profit margins exceeding expectations may raise questions about compensation but lack the direct employee-driven concern that leads to an audit. Changes in management might influence company policies but do not inherently indicate a compliance issue. Furthermore, a merger might prompt a review of benefits and employment practices, but it is not a direct cause for an audit unless accompanied by specific employee complaints regarding pay practices.