The U.S. Department of Labor's Wage and Hour Division is actively investigating employers to eliminate illegal payroll practices and ensure the Fair Labor Standards Act (FLSA) is being followed.
Employers may be selected for an investigation for a number of reasons, according to the DOL:
- they operate a business in a low-paying industry
- they hire vulnerable workers
- their industry has been subject to violations in the past
- there has been rapid growth/change in the industry
If a business is selected for an investigation, the Wage and Hour Division is not obligated to warn the employer before an appointment, but in many cases, the owner will be contacted when an investigation is opened.
When Wage and Hour Division investigators arrive at the business' location there are specific things they will be looking for - minimum wage, overtime and recordkeeping violations. If the employer has hired workers under the age of 18, the investigators will want to make sure child labor provisions are being upheld.
Employers can prepare for the worst by making sure they always have up-to-date and accurate accounts of all
employee attendance.
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