Wage Audits and Record Keeping Requirements


A mid-sized Framingham employer was faced with an audit of his business’s wage payments and record-keeping by the Massachusetts Attorney General’s wage and hour office. The inquiry began after an employee complained about his overtime pay. The employer came to us for help handling the audit and asked us to assess other potential wage issue exposure. On review of voluminous employee time sheets and wage payment records, we identified several legal issues that exposed the employer to potentially large damages for back wages to employees and penalties to the government. We explained record-keeping and wage payment requirements under Massachusetts law. We reviewed the employer’s policies, modified them as needed, and helped the employer create an employee handbook. This provided strong communication with employees and firm/necessary controls of employer policies.

Result:  The audit was successfully managed through cooperation with the Attorney General’s wage and hour office. Record-keeping, wage and other policies were implemented to assure future compliance with the law.