How Does a Wage and Hour Investigation Work?
How Does a Wage and Hour Investigation Work?

How Does a Wage and Hour Investigation Work?

The Department of Labor’s Wage and Hour Division (WHD) has been ramping up enforcement activity in an effort to ensure compliance with labor standards and protect the U.S. workforce. Because of this, industries with “vulnerable workers”—such as young, disabled or agricultural workers—may be receiving a visit from a WHD investigator. Targeted industries often include the franchising, temporary employment, independent contracting and subcontracting industries.

According to Carl Smith, WHD Deputy Regional Administrator, a typical wage and hour investigation has four stages:

# The investigator meets with you, the employer, to discuss the purpose of the investigation and to answer any questions you may have.
# The investigator takes a tour of the facility, looking for evidence of vulnerable workers and other red flags.
# Payroll and time records are reviewed to see whether you are keeping accurate records of hours worked for all employees. WHD investigators are trained to spot practices like improperly classifying employees as independent contractors and paying nonexempt employees salaries instead of hourly wages.
# The investigator chooses employees to interview, using them to cross-reference any records findings.

After he or she has collected all this information, the WHD investigator determines your compliance status and decides whether to take further action, such as subpoenas for records, search warrants or surveillance of the property and employees. If you have indeed violated any labor regulations, you may be required to pay back wages, liquidated damages and/or civil penalties. You could also be subject to training, monitoring or reporting requirements, or forbidden from participating in federal contracts in the future.

When the WHD investigator is knocking at your door, accurate payroll and time records—and quick, easy access to those records—can make the process a lot smoother. Having a system in place can help ensure your compliance with wage and hour regulations, so you will have nothing to fear from a WHD investigation. It also helps to have a trusted partner like Paycor to answer your questions along the way.

Learn more about how we can help you stay compliant and avoid costly fines from agencies like the Department of Labor: talk to a Paycor representative.

Source: American Payroll Association

More to Discover

EEO-1 Reporting Deadline For 2019

EEO-1 Reporting Deadline For 2019

For more than five decades, employers were required to submit the EEO-1 report by September 30 of each year. In 2018, that date changed to March 31. And this year, many employers were preparing to meet that deadline. But on February 1, 2019, the Equal Employment Opportunity Commission (EEOC) notified all employers of an extension. The deadline to submit EEO-1 data was moved to May 31, 2019. Why the Extension to File the EEO-1 Report? Like many other federal agencies, the EEOC was impacted by the government shutdown. With resources stretched thin, the agency was unable to open the EEO-1 filing website as planned in January. As a result of the delay, employers were granted a two-month extension to continue gathering necessary data to...

Jacksonville Jumbo Shrimp Case Study

Jacksonville Jumbo Shrimp Case Study

Needing a more efficient solution to manage time worked for their seasonal and part-time staff, the Jacksonville Jumbo Shrimp turned to Paycor for help. Discover how Paycor’s robust Perform Time solution drastically improved how the ball club tracks and reports on hours worked.

How to Find the Perfect HR Payroll Systems: Top 10 Things to Look For

How to Find the Perfect HR Payroll Systems: Top 10 Things to Look For

HR teams spend nearly 70% of their time on inefficient administrative tasks, some of which are still paper-based. As a business grows and takes on new employees, HR professionals may find the need to expand their payroll system to something more robust in order to address the needs of all employees. Having an integrated HRIS solution provides more efficiency because information only has to be entered once, and it improves accuracy across all databases. It also helps improve employee engagement by providing learning opportunities and lines of communication. Why Do I Need an HRIS Solution? In short, an HRIS (human resource information system) solution saves you money and time. Also known as human capital management (HCM) or a human...

HR

LJ Ross Case Study

LJ Ross Case Study

Needing a more efficient way to manage hours and track incidents, LJ Ross turned to Paycor. Now, with Perform Time, supervisors are no longer burdened with reviewing time cards and managing attendance policies by hand. Download the case study to learn more.