A Comprehensive Guide to Navigating a Department of Labor (DOL) Investigation

Although it may sound like a daunting and stressful situation, there is no need to panic. When faced with a Department of Labor (DOL) investigation, it is crucial to maintain composure and take proactive steps to protect your organization. This article will guide you through what to expect during the investigation and provide you with insights about how to effectively handle any potential issues that may arise.

Initiating an Investigation

DOL investigations can be triggered by various factors. Some investigations are initiated based on complaints filed by current or former employees, and in rare cases, even competitors. However, others are launched as "directed" investigations, in which the Division specifically targets "random" companies based on the DOL's enforcement focus and priorities for a given year. The key thing to remember is that the initiation of these investigations is often far outside of your control. Once an investigation is begun, whatever the reason for it may be, the investigation will proceed until its completion.

Understanding the Investigation Process

Investigations generally follow a structured pattern. Normally, the investigator will send an appointment letter requesting an "initial conference" with company representatives. During this meeting, the investigator aims to gather information about the company, explain the investigation process, discuss the documents to be reviewed, and schedule a mutually convenient time for conducting in-person employee interviews. Once this phase is completed, the investigator will schedule a "final conference" with company representative(s) to discuss his/her findings and outline next steps.

Preparing for the Investigation

The most effective way to prepare for a DOL investigation is to maintain a robust system of recordkeeping. Every law enforced by the DOL places the burden of recordkeeping on the employer. Meticulous documentation serves as your strongest defense against any allegations of noncompliance, allowing you to provide compelling evidence of your adherence to applicable labor laws.

Failure to maintain adequate records not only constitutes a violation but also undermines your credibility, as it may imply a disregard for legal obligations. Consequently, any employee allegations gain at least partial credibility due to the absence of required records. Therefore, it is essential to prioritize diligent practices.

Another valuable practice is to ensure that decision-makers from all relevant departments within your company are available to address and clarify any inquiries raised by the investigator during the document review and employee interview phases. Representatives from Human Resources, Payroll, Operations, and Accounting should be accessible, as their knowledge of established processes and procedures can facilitate prompt and accurate responses, minimizing the investigator's need for extensive probing, which could uncover additional potential violations. It is important to note that once an investigator arrives at your premises, they have the authority to inspect compliance with all laws enforced by the Department, regardless of the specific law they initially intended to enforce. DOL is responsible for enforcing a wide range of Labor Laws, including the Fair Labor Standards Act, Service Contracts Act, the Davis Bacon Act, the Family and Medical Leave Act, among other lesser-known laws. 

Handling the Investigator's Findings

Upon completing the investigative phase, the investigator will present their findings to a decision-maker of your company. If the audit proceeds smoothly and no violations are found, they will request your commitment to maintain future compliance and conclude the investigation.

However, if your company is presented with monetary findings, it is crucial to request a detailed breakdown of the charges and violations. Seek clarification on whether these findings are based solely on your records or if they incorporate information obtained from employee interviews. If the findings rely on interviews, inquire about the number of employees interviewed, question whether the information obtained from just a few interviewed employees is being extrapolated to represent an entire department or the company as a whole.

Furthermore, consider whether you possess any information that contradicts the alleged violations. If such evidence exists, present it to the investigator for consideration. Additionally, request access to the back wage calculations to ensure the accuracy of computations. Preferably, you want to conduct the computations yourself.

Final thoughts 

Now that we have provided you with an overview of what to expect during an investigation, as well as the steps you can take to prepare, it would be advisable to conduct an audit of your processes and procedures concerning recordkeeping and pay practices. By doing so, you will ensure that you are well-prepared and avoid being caught off guard the next time you hear the words, 'I'm from the Government, and I am here to help'.

- Aaron Ramos, Labor Compliance Officer