By Kate McGovern Tornone, BLR Editor
Warning letters from the U.S. Department of Labor (DOL) can be challenged in court, the U.S. Court of Appeals for the D.C. Circuit has ruled in Rhea Lana, Inc. v. Department of Labor, No. 15-5014 (D.C. Cir. June 3, 2016).
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The ruling is noteworthy for employers because once on notice of an alleged violation, a company may be subject to penalties and damages in any related complaints. A successful appeal of such a letter would mean that an employer could at least argue it had made a good-faith effort to comply with the law.
Moreover, while the statute of limitations for a civil action against an employer generally is two years, an action alleging a willful violation may be brought within three years, the court noted.