HR Management & Compliance

Employment Law Tip: Preparing for a Wage-Hour Investigation

Wage and hour investigations are often the result of a complaint filed by an
employee or former employee. But sometimes the U.S. Department of Labor, or a
state agency, targets specific industries for audits. During an investigation,
the DOL will visit the business and gather data on wages, hours, and other
employment conditions or practices. If it turns out the employer isn’t in
compliance with the law, back pay and penalties may be assessed.

 

If you learn that the agency is coming to investigate at your workplace,
here’s a quick checklist of what you can do to prepare:

  • Appoint a company representative or legal counsel to interact with the
    investigator. If you believe that you may have wage and hour issues, be sure to
    contact an experienced lawyer as soon as possible so you can get detailed
    information about your rights and responsibilities with respect to those issues.
  • Before handing documents or other information over to the investigator, make
    sure you understand the scope of what’s being requested, that the documents are
    responsive to the request, and that your representative or lawyer has reviewed
    everything first.
  • Provide managers with information about the investigation so they know what
    to expect.
  • Don’t discourage employee cooperation with the investigation or respond
    negatively to any employee who files a wage and hour complaint.
  • Be prepared to demonstrate your willingness to cooperate with
    investigators.

Additional Resources:

California Wage &
Hour Advisor

Overtime
Exemption Audits in California: Secrets to a Step-by-Step Audit Process that
Avoids Employee Classification Disputes

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