Protecting Your Company Against Department of Labor Audits and Investigations

February 2021

When an employee makes a complaint against an employer with the U.S. Department of Labor, this may trigger a government labor audit or investigation. However, it may also conduct a random audit or investigation at any time. Some types of businesses are more commonly audited than others. For example, businesses that pay low wages or that employ many vulnerable types of workers are often audited. If you are an employer whose business is facing a Department of Labor audit or investigation, hiring a skilled California employment defense lawyer is the smart thing to do. This lawyer can give you the advice you need to resolve the audit as quickly and efficiently as possible.

Common Central Points of Audits

The Department of Labor has several common focal points that are considered during most company audits. Wage and hour disputes often lead to an investigation about whether or not an employee is compliant with the law in paying employees at least minimum wage and overtime for any work hours over forty within one week. Another common point that audits address is the classification of employees as either independent contractors or full employees. Unfortunately, sometimes employers try to save on paying for overtime or other benefits by erroneously classifying employees as independent contractors. The Department of Labor has its own definitions for full employees and for independent contractors and will check to see if your company is in alignment with these.

How a Department of Labor Investigation Works

There are different types of Department of Labor investigations and audits that are designed to handle various types of employee complaints or certain areas that are suspected to be problematic. However, these investigations all start with an initial conference to discuss the extent and focus of the audit. An investigation can be limited, which means it may only involve a certain department or group of employees, or it can be a self-audit in which the investigators allow you to do your own partial review. In any case, there are likely to be record reviews as well as interviews with employees. It is wise to have legal representation during any sort of extensive audit.

Call to Schedule a Consultation With a California Employment Defense Lawyer Today

If you are an employer who is facing a Department of Labor audit, call to schedule a consultation with a California employment defense lawyer today.  The experienced legal professionals at the Straggas Law Group, APC will help you to prepare for the investigation or audit so that it can be resolved quickly and efficiently. We serve the cities of Irvine, Newport Beach, Santa Ana, Costa Mesa and surrounding Orange County communities. Visit our website at or give us a call at 949-660-9100 and let us be your legal advocate.

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