U.S. Department Of Labor Is “Spot Checking” Employers
The U.S. Department of Labor, Wage and Hour Division is responsible for the administration and enforcment of Federal Laws involving labor standards. We have a number of clients who have received letters that they were subject to a “Compliance Review.” The purpose of the visit is to determine whether certain federal laws have been violated. The Wage & Hour Division does not require an investigator to previously announce the scheduling of an investigation, although in many instances the investigator will advise an employer prior to opening an investigation. The investigator has the latitude to initiate unannounced investigations in many cases in order to directly observe normal business operations and develop facts quickly.
These investigations are initiated for a number of reasons, all having to do with enforcement of the laws and assuring an employer’s compliance. Many of them are initiated because of a complaint. In addition, the Wage & Hour Division selects certain types of businesses or industries for investigations. Typically low-wage industries because of the high rates of violations, the vulnerability of their workers, or rapid changes in an industry such as growth or decline. I have also seen where they will visit high schools and request to see the work permits for students. Afterwards, they will visit the businesses to determine if the employer is in compliance with the various child labor laws.
When the investigator arrives, he or she will want to review time and payroll records, I-9’s, a list of current positions, job descriptions, a list of all independent contractors, a list of all current and former employees with home addresses and telephone numbers (going back two years) and will tour the establishment. You are premitted to have a representative present but all interviews of employees are one-on-one with the investigator.
The times are changing. Federal and State agencies are working together and will report violations to each other. Please review your personnel policies, practices, and procedures. If you have any doubts about possible violations please call to discuss.
