What Are The Reasons That The Department Of Labor Would Investigate My Business?

The Department of Labor’s jurisdiction boils down to two different areas. The first is when an employee comes in and files a formal complaint with them and they believe that there has been a violation of any of the laws that the Department of Labor oversees. The other is when the Department of Labor goes out and does random audits. They may show up at a business unannounced, even though there has been no complaint, to make sure that they are in compliance with recordkeeping and paying their employees appropriately. The areas that the Department of Labor typically audits randomly are the foodservice and construction industries. If a business operates in those two fields, they should be aware that they will likely be the target of an investigation at some point.

What Happens If A Claim Has Been Filed Against Me?

Typically, the first thing that happens after a claim is filed is that an investigator will either make contact with the business owner or they will just show up at the business and request certain documents or request to speak to some of the employees. There is a provision that provides that if it’s an inconvenient time, the employer can ask the investigator to come back at a future date. There is some leeway for them to have some time to try to comply with whatever the investigator is asking for.

What Do I Do If a Department Of Labor Investigator Shows Up At My Place Of Business?

We advise employers to seek advice from their lawyers if they are contacted by a Department of Labor investigator. If they don’t have a lawyer, then they should retain one to help them through the investigation. Department of Labor fines and penalties for violations can be very severe. The sooner an employer can find a competent employment attorney to assist them in that process, the better off they are at defending themselves.

The Department Of Labor Has Contacted My Company With Questions. How Serious Is This?

Questions from the Department of Labor are very serious. There may have been a complaint by an employee leading the Department of Labor to believe that there might be a violation. They are going to go out and investigate and if the penalties, fines, and any back wages are not paid, then the Department of Labor has the option of bringing a lawsuit or referring the employee to a private attorney to bring a lawsuit. Contact from the Department of Labor is something that employers should take very seriously and seek competent legal advice immediately.

Are Employers Required To Fully Cooperate In a Department Of Labor Investigation? Am I Required To Answer All Of Their Questions?

The Department of Labor can file to get a subpoena from a court requiring an employer to turn over documents or to provide certain employees to testify. If you refuse to cooperate, there are ways that the Department of Labor can get around that. Another thing that the Department of Labor can do is file their own lawsuit. There are ways that you can negotiate the parameters of the investigation, like which documents might be relevant and how far back they go when they are seeking documents. You want to do that pretty early on in the process. Otherwise, the Department of Labor has subpoena power and lawsuit power.

How Should I Respond To a Department Of Labor Investigation?

Our advice for employers who are in this situation is to retain counsel right away, irrespective of how the Department of Labor perceives that. Most investigators deal with lawyers who are representing employers and the Department of Labor has their own lawyers too. These investigators, for the most part, are very experienced. If an employer tries to go into negotiation not knowing anything about wage and hour laws or how to negotiate one of these investigations, that sets the initial framework for a situation where the results are not going to be very favorable to that employer. We suggest in almost every situation that an employer retain counsel immediately and then have that lawyer contact the Department of Labor.

For more information on Department Of Labor Investigations In Texas, a case evaluation is your next best step. Get the information and legal answers you are seeking by calling (281) 277-3066 today.