Although California businesses may be preoccupied dealing with attorneys invoking the Private Attorneys General Act, a federal government investigator may come knocking at your door when you least expect it asking to conduct an audit of your wage and hour practices. While you might be familiar with state-specific best practices, would you know what to do if the U.S. Department of Labor showed up tomorrow? These audits may involve a lot more than you think and have some particular nuances unique to the federal government. Here is a general overview of the process along with the top ten things you need to know about this often-overlooked giant.
The DOL Audit Process
An audit conducted by the U.S. Department of Labor (DOL), Wage-and-hour Division (WHD) typically involves the following stages:
The audit may be initiated by an onsite visit, but generally involves a formal letter seeking documents and information. The DOL-WHD investigator will seek to know if employees have been notified of their rights, and may generally begin by looking to determine whether the employer has made the necessary postings. The DOL-WHD requires employers to post in areas frequented by employees their rights under the FLSA, including minimum wage, overtime, and COVID-19-related paid leave rights (in addition to other federal entitlements).
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