Preparing for a Department of Labor Audit

Are you prepared for a U.S. Department of Labor audit? It is no secret that DOL audits are on the rise. Now is the time to be proactive and prepare your organization for a DOL audit.

The DOL is the federal agency responsible for enforcing compliance of ERISA, the Fair Labor Standards Act (i.e., minimum wage, payment, and exemptions from overtime), and FMLA. The DOL has the authority to conduct audits, civil and criminal investigations in addition to assessing penalties and other remedies against employers.

The following is a list of useful steps employers can take in order to prepare for a DOL audit:

  1. Maintain up-to-date policies, and procedures.
  2. Conduct annual reviews of personnel records and conduct in self-audits.
  3. Review job descriptions, overtime records, employment classifications, and the use of independent contractors.
  4. Maintain specific roles within your organization.
  5. Examine your organizational structure and develop viable internal controls and processes to maintain compliance.
  6. Promptly correct any mistakes or willful violations through your self-audit. Remedies, including making employees whole and disciplining employers, should be well-documented.

The regulatory landscape of a DOL audit is complex. As a result, employers should be proactive in preparing for a potential audit.