DOL's cops are looking closer than ever for FLSA compliance violations

by on April 2, 2009 · 0 Comment POSTED IN: HR Info Center

DOL is investigating wage and hour law violations at all kinds of companies – so be prepared

In 2002, the DOL collected $175 million in back pay for 263,593 workers – the largest amount in 10 years. Its Wage & Hour Division had a 33% increase over 2001 in back pay.

The Wage & Hour Division concentrated FLSA compliance investigations on child labor and enforcement actions in low-wage industries. Nearly $6 million in back wages were collected for garment workers alone, and the number of garment workers receiving back wages increased by more than 50%.

All it takes is one complaint

In this job market, more and more disgruntled, laid-off employees are complaining to the Department of Labor about wage and hour law violations – both real and imagined.

The DOL has the right to inspect any company’s payroll records and practices. All it takes is one complaint from an unhappy employee, and a DOL inspector can show up at your door.

No notice required

The DOL can even arrive without notice if it wants (though it usually doesn’t surprise people). And its inspectors have the right to interview employees about their compensation.

That’s why you need to be prepared for a FLSA compliance investigation

The best preparation for a DOL inspection is an internal audit of your company’s payroll practices. If you’re notified of an upcoming DOL investigation, take some time to brief employees so they’re prepared to discuss their pay with the inspector.

Source: U.S. Bureau of Labor Statistics.

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