Department of Labor Audits – Why Am I Being Investigated

After receiving correspondence from the Department of Labor notifying the practice owner of an audit, practice owners often ask, “Why am I being investigated?” The following list includes reasons and complaints that may instigate a Department of Labor audit investigation:
– A complaint by a current or former employee regarding alleged improper compensation practices
– Alleged non-compliance complaint
– A complaint that job descriptions do not accurately reflect the work employees actually perform
– Non-exempt employees not being paid for all of the work they perform
– Form 5500 issues
– Improper classification of exempt employees
– Family and Medical Leave Act (FMLA) compliance
– Lack of independent contractor status verification
– Overtime compliance issues
– Inadequate wage & hour record keeping systems
Department of Labor compliance officers typically check dental practices for the following:
– Improper minimum wage and overtime payments
– Unrecorded and improperly paid work
– Improper straight salary compensation of employees
– Minimum age requirements for employees
– Falsification of personnel, payroll, or time keeping records
– Grounds for discrimination charges on equal pay for equal work
– Possible discrimination charges for wage and salary policies affecting employees over the age of 40
– Improper payroll deductions on garnishees, tools, uniforms, and company merchandise