What to expect in the aftermath of a Wage and Hour Division investigation

The Department of Labor's Wage and Hour Division is dedicated to weeding out employers violating the Fair Labor Standards Act (FLSA). By doing so, the division is ensuring low-wage and vulnerable employees are receiving proper pay, while also making sure some companies aren't gaining an unfair advantage over competitors by paying workers less.

"Investigators are expected to uncover any violations that are substantial" wage and hour expert Morris Jennings told Business Management Daily. "Investigators are particularly inquisitive about exemption classifications, overtime pay calculations, time records, and dubious contractor determinations."

If the investigation uncovers any violations, employers could be subject to paying employees back wages for any compensable time attendance as well as damages, court and lawyer fees. Businesses might also be ordered to pay civil penalties if the court finds they were willfully violating the law or failed to comply with correction measures ordered by the court. 

In most cases, the division will ask employers to bring payroll practices up to compliance before issuing formal complaints. These requests usually include tracking employee attendance and pay rates as well as keeping accurate records.