The Department of Labor's Wage and Hour Division (WHD) is responsible for investigating employers to ensure they are complying with the Fair Labor Standards Act (FLSA). These investigations usually occur for one of two reasons - an employee has filed a complaint that his or her employer is not upholding fair time and attendance policies, or the WHD is performing an overarching audit of businesses in an industry prone to payroll violations.

For instance, the WHD currently has a number of ongoing investigations underway in low-wage sectors, including the hotel and motel industry and the food service, construction and garment manufacturing sectors.

These visits are usually not announced and investigators are not required to disclose the reasons behind them. When they arrive, they will ask employers for a number of things, including records of revenue (to determine whether businesses are considered covered entities), employee paperwork and payroll documents. The FLSA requires all employers to keep accurate records of employees, including identification information (full name, Social Security number, birthdate) and employment data, such as the positions they were hired for, starting wages and time and attendance.

A company eager to facilitate the furnishing of these documents might consider using a timeclock and payroll processing software that automatically generates this information. 

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