DOL Wage and Hour Division Audits for Low Wage Industry Violations
The U.S. Department of Labor (DOL) has recently labeled the hospitality industry along with other low wage industries as "high-risk" in regard to the frequency of federal wage and hour law violations against vulnerable workers. As a result, the DOL has planned an initiative that will target these industries across the country, with DOL Wage and Hour Division audits and investigations.
According to the DOL Wage and Hour Division (WHD) fact sheet, in an audit, the division chooses certain types of low wage industries for investigations because of the high rates of violations, the employment of vulnerable workers, as well as the quick changes in the growth or decline of the businesses. The DOL reports that certain businesses are targeted for investigations in order to protect employee rights, by improving employer compliance with federal laws, like the Fair Labor Standards Act (FLSA), requiring proper overtime and minimum wage payment.
In a DOL Wage and Hour Division investigation:
• An employer's records are examined in order to determine the exact exemptions or laws that apply.
• The company's payroll and time records are examined, to make sure that the employer is not violating any wage and hour laws under the FLSA.
• Certain employees are interviewed, to verify the employer's payroll, examine the classification of employees, and ensure the legality of working minors.
• When the investigations are completed, the employer is reportedly informed on the extent of the employment violations, and instructed on how to implement corrective actions. If the employer has violated overtime or minimum wage laws, and back wages are owed to workers, the WHD investigator will ask that the correct amount of back wages are paid to the employees.
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