Ryan Rogers is auditing the payroll of Hampton Industries. A majority of Hampton Industries’ employees are Hispanic. Ryan sees that at the end of each pay period an employee gets two checks. One check covers all the hours worked up to 40 hours and has the proper deductions as mandated by the State and Federal law. The second check is for “straight time” above a 40 hour work week and has no deductions.

Required:
What are some of the violations that Ryan must discuss with management about these transactions?