Federal Analysis
Ankura Advises on Payroll Audit Compliance
March 18, 2026
Ankura highlights the critical importance of conducting regular payroll audits to ensure compliance with federal, state, and local wage and hour laws, as well as internal company policies. This proactive approach helps mitigate significant legal and financial risks, including costly class action settlements. The U.S. Department of Labor (DOL) enforces these regulations, making adherence essential for government contractors to avoid penalties and litigation exposure.
- Why this matters: Payroll non-compliance can lead to substantial settlements, with Ankura data showing average settlements near $1.5 million between 2024 and 2025.
- Government contractors should prioritize payroll audit programs to identify and remediate wage and hour issues before enforcement actions.
- Procurement professionals can leverage this insight to evaluate contractor compliance risk and incorporate audit requirements into contract management.
- Organizations may benefit from engaging specialized consulting firms like Ankura to conduct thorough payroll reviews and reduce exposure to costly disputes.
Ankura data shows the average settlement from 2024 to 2025 is almost $1.5 million, and the median settlement is just under $1 million.
— Jeremy Guinta
Agencies
U.S. Department of Labor
Vendors
Ankura