AI Wage and Hour Compliance Agent
Automating Wage and Hour Compliance for PEOs with AI
Multi-State Rules Engine at Scale
The agent enforces FLSA, state-specific overtime (including daily OT and seventh-day premiums), local minimum wages, meal and rest break requirements, and tip credit rules—automatically applying the correct jurisdiction based on each worksite location.
Fair Workweek and Predictive Scheduling Compliance
AI automation handles advance-notice windows, predictability pay calculations, right-to-rest enforcement, and offer-of-hours sequencing across covered jurisdictions like NYC, Chicago, Seattle, and Oregon—capturing required consents and attestations in real time.
DOL-Ready Audit Trails and WHD Response
Every timecard edit, schedule change, manager approval, and employee attestation is logged with immutable timestamps and reason codes—producing investigation-ready exports aligned to 29 CFR Part 516 and WHD Fact Sheet #44 requirements.
How Cassidy automates this using AI
Step 1: Trigger on client onboarding or jurisdiction change
The Workflow activates when a new client is added to the PEO platform or when worksite locations are updated—pulling industry codes, covered locations, job classifications, and pay structures from your HRIS or onboarding system.
Step 2: Map applicable wage and hour rules
Cassidy's Knowledge Base contains your compliance rule library. The agent automatically assigns the correct FLSA, state, and local requirements—overtime thresholds, minimum wage rates, meal/rest timing, Fair Workweek coverage, tip credit rules, and minor labor restrictions—based on each worksite's geolocation and client industry.
Step 3: Validate time entries and flag exceptions
As time punches flow in from your time and attendance system, Cassidy checks each entry against configured rules—flagging missed meal breaks, short rest periods, minors approaching curfew, and schedule changes that trigger predictability pay. Exceptions route to manager queues with required attestation prompts.
Step 4: Calculate premiums and regular rate
The Workflow computes overtime, double time, split-shift premiums, reporting time pay, and predictability pay—including blended rates when employees work multiple jobs or rates in a single workweek. Tip credit adjustments and minimum wage true-ups are applied automatically by locale.
Step 5: Generate DOL-ready audit documentation
Cassidy compiles immutable logs of all time entries, edits, approvals, schedule versions, and attestations into a structured audit trail. When a WHD investigation request arrives, the agent produces a complete evidence pack—employee rosters, timecards, pay registers, premium calculations, and policy acknowledgments—filtered to the requested timeframe and locations.
Implement it inside your company
- Hands-on onboarding and support
- Self-paced training for your team
- Dedicated implementation experts
- Ongoing use case discovery
- ROI tracking & analytics dashboards
- Proven playbooks to get started fast
