California employers should conduct regular employee audits (such as quarterly reviews of personnel files, time cards, pay stubs, and mileage records) using random sampling of 5-10% of employees to identify and address compliance gaps before they result in costly lawsuits, rather than passively hoping practices remain compliant.
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Employee Audits Can Save California Employers From Costly LawsuitsAdded:
You need to be very vigilant about your practices. What I mean by that, you need to conduct audits on some some intervals. Maybe a quarterly audit, go through their personal file, go through their time cards and pay stubs, and go through what they're doing, their mileage, and all that. If you have 100 employees, you don't have to do 100 audits on a quarterly basis. Just pick random employees, 5 to 10 employees if you have 100 employees, I would say 5 to 10% of your employees should be audited on a quarterly basis. And then, do the audit and see if there's any uh if there any gaps in your compliance. And if you find those gaps, you plug them. But you cannot just sit quietly and think that things are going to work out and reduce your risk. No, you have to actively reduce your risk and uh prevent losses from happening.
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