| Take preventative measures to minimize exposure: |
| • Check all current and recent (within the last several years) 1099’s and agency vendor agreements – review job duties of those named independent contractors and verify that they should not be classified as employees • Make sure that all job descriptions are current, accurately reflect job duties, and justify exemptions • Review time keeping systems • Employers may round up or round down fractions of hours up to 15 minutes (must be done consistently) • Ensure that payroll records and record keeping procedures are current, accurate, and compliant • Make sure that the time keeping system is convenient for entering all hours worked • Develop a formal program for reporting and resolving employee wage concerns |
| Familiarize Staff In: |
| • Exempt vs non-exempt status – based on law and cannot be altered – non-exempt employees must be paid for all hours worked – exempt employees cannot have deductions based on quality or quantity of work • Overtime and record keeping training – FLSA and state wage laws – wage and hour policies and procedures • DOL inspection procedures – refuse the compliance officer on site until a search warrant is obtained – request 72 hours to meet investigative demands – request interviews and on-site inspection to take place at a reasonable time – obtain outside counsel to help navigate the investigation process – protect confidential information and trade secrets • DOL investigation rights to:decline to provide advance notice of on-site audits – investigate with or without probable cause or consent – inspect payroll and tax records – conduct surveillance, take photos, and collect evidence – conduct employee interviews – issue and enforce subpoenas for records and interviews |
| Designate an Investigation Response Team: |
| • Assign the following roles – team leader – the compliance officer’s main point of contact (usually an attorney or a senior management representative) – opening and closing conference participants – on-site representative to escort the investigator – document production manager – contractor liaison – union liason – interview representative (explains the interview process to employees and participates in management interviews) • Designate a space for the opening/ closing conference, employee interviews, and for the Wage & Hour Division to work |
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