How a Regulated Company Achieved Perfect Audit Compliance
A 180-employee regulated company facing a Department of Labor audit achieved perfect compliance with audit-ready time tracking, eliminated penalties, and established ongoing confidence in regulatory compliance.
Company Overview
A government contractor providing facilities management and maintenance services with strict labor compliance requirements. With 180 employees including hourly workers, supervisors, and administrative staff working across multiple federal contracts, the company operates under FLSA, Davis-Bacon Act, and Service Contract Act regulations requiring detailed documentation of all work hours.
- Total Employees
- 180 employees
- Industry
- Government Contractor
- Federal Contracts
- 12 active contracts
- Location
- Washington, DC
The Challenge
Facing DOL Audit Without Adequate Documentation
- Inadequate Audit Trail
The company received notification of an upcoming Department of Labor audit. Their manual paper timesheets provided no verifiable audit trail. They couldn't prove hours worked, overtime calculations, or break compliance. Supervisors' signatures were the only verification, but auditors questioned their reliability. The company faced potential penalties of $500K+ for non-compliance.
- Missing Compliance Documentation
Federal contracts required detailed documentation of work performed, prevailing wage compliance, and accurate time allocation across contracts. The company had no systematic way to document which employees worked on which contracts, for how long, or what work was performed. This put federal contract renewals at risk and exposed the company to serious legal liability.
- Overtime and Break Compliance Uncertainty
The company couldn't verify compliance with overtime regulations or mandatory break requirements. Manual records were incomplete and unreliable. During the pending audit, they had no way to prove employees received required breaks or that overtime was calculated correctly. This created significant exposure under FLSA and Service Contract Act provisions.
- Risk of Contract Loss and Penalties
Beyond immediate audit concerns, the company risked losing federal contracts worth $25M annually due to compliance failures. Government agencies required contractors to maintain detailed labor records, and the company's current system couldn't meet these requirements. Competitors with better compliance systems were positioned to take market share if the company failed the audit.
The Solution
Audit-Ready Time Tracking with Complete Work Verification
Facing an imminent audit with inadequate documentation, the company implemented WorkComposer across all 180 employees with a focus on creating comprehensive, verifiable audit trails that would satisfy Department of Labor requirements and establish ongoing compliance confidence.
- 1. Automatic Time Capture with Verification
- Every work hour was automatically tracked with precise timestamps. Optional screenshots and activity logs provided verifiable proof of work performed during tracked hours. This created the audit trail the company previously lacked—showing not just when employees were on the clock, but what work was actually being performed.
- 2. Contract-Level Time Allocation
- Time was automatically allocated to specific federal contracts. The system tracked which employees worked on which contracts, for how long, and what tasks were performed. This satisfied government contract requirements for detailed labor documentation and enabled accurate prevailing wage compliance reporting.
- 3. Overtime and Break Compliance Monitoring
- Automatic overtime calculations and break tracking ensured compliance with FLSA and Service Contract Act regulations. The system documented all break periods taken, alerted supervisors when employees missed required breaks, and maintained comprehensive records proving overtime was calculated correctly according to federal standards.
- 4. Comprehensive Audit Reports
- The company could generate detailed audit reports showing complete work history, contract time allocation, overtime calculations, break compliance, and work verification for any employee or time period. These reports provided the documentation auditors required and established ongoing confidence in compliance across all federal contracts.
Implementation
Emergency Rollout Before Audit Deadline
With 8 weeks until the audit, the compliance team worked with WorkComposer to configure the system for federal contract requirements. Set up contract-specific time tracking, prevailing wage categories, overtime rules, and break compliance monitoring. Identified critical documentation gaps that needed immediate attention.
Deployed to all 180 employees with expedited training sessions. Emphasized the audit deadline and importance of complete, accurate time tracking. Configured automated alerts for supervisors to ensure no gaps in documentation. Employees understood this was critical for company survival and contract retention.
Accumulated 5 weeks of comprehensive time tracking data with complete audit trails. Generated sample audit reports to validate documentation quality. Worked with legal counsel to ensure records met all DOL requirements. Built confidence that the system would satisfy auditor requirements.
Department of Labor auditors reviewed 5 weeks of comprehensive time records. Every audit request was fulfilled within minutes with detailed, verifiable documentation. Auditors found zero compliance violations. The company passed with perfect results—exceeding auditor expectations for government contractor record-keeping.
Results
From Compliance Crisis to Audit-Ready Confidence
- ✓Perfect Audit Results with Zero Violations
- The company passed the DOL audit with zero compliance violations. Auditors praised the comprehensive documentation, complete audit trails, and verifiable work records. What could have been a catastrophic audit became a showcase of best-in-class compliance practices for government contractors.
- $Avoided $500K+ in Potential Penalties
- By achieving perfect compliance, the company avoided potential penalties estimated at $500K+ for labor violations, back pay claims, and contract compliance failures. The audit-ready documentation eliminated all regulatory exposure that had threatened the company's existence.
- ↑Retained $25M in Federal Contracts
- Perfect audit results enabled contract renewals for all 12 federal contracts worth $25M annually. Government agencies gained confidence in the company's compliance systems. The company won 3 new federal contracts citing their superior labor documentation as a competitive advantage.
- ✓100% Overtime and Break Compliance
- Automatic tracking ensured perfect compliance with FLSA overtime requirements and mandatory break provisions. The system documented all break periods taken and calculated overtime correctly according to federal standards. Supervisors gained real-time visibility to prevent compliance issues before they occurred.
- 📊Contract-Level Labor Documentation
- For the first time, the company had detailed documentation of which employees worked on which federal contracts, for how long, and what work was performed. This satisfied government contract requirements and enabled accurate prevailing wage compliance reporting across all contracts.
- ↑Ongoing Compliance Confidence
- The company transitioned from constant compliance anxiety to ongoing confidence. With audit-ready documentation maintained automatically, future audits became routine rather than existential threats. The system provided peace of mind that all labor regulations were being followed across all federal contracts.
"We were facing a DOL audit that could have ended our company. Our manual timesheets couldn't prove anything—no audit trail, no work verification, no compliance documentation. WorkComposer gave us audit-ready records in just 5 weeks. We passed with zero violations when we expected catastrophic penalties. Now we maintain perfect compliance automatically, we've retained all our federal contracts, and we've won new business because agencies trust our labor documentation. This system literally saved our company."
Related Solutions
Explore How WorkComposer Can Help Your Business
Compliance & Audit Time Tracking
Maintain audit-ready records and ensure regulatory compliance with comprehensive documentation.
Payroll Processing
Automate accurate payroll with precise time tracking and eliminate compliance risks.
Employee Accountability
Build accountability with transparent time tracking and verifiable work records.
Let’s get you started
Start tracking time, monitoring productivity, and generating insights in just minutes. WorkComposer is designed for ease, speed, and real results.
- ✓ Automatic and manual time tracking
- ✓ Real-time productivity reports
- ✓ Web and app usage monitoring
- ✓ Screenshots and attendance tracking
- ✓ Easy team onboarding
No credit card required. Setup takes less than a minute.
