NYC Department of Labor Investigation Lawyers

Employers are subject to the federal Fair Labor Standards Act (FLSA). Section 11(a) of the FLSA identifies the Department of Labor as the investigative arm of the government to conduct cases and audits on U.S. businesses.

The federal or state New York City Department of Labor’s Wage and Hour Division (WHD) under the FLSA can look at employer records regarding wages, hours, they can question employees, and study the employer’s employment practices.

Like the federal DOL, the New York DOL branch investigates employers for compliance with the necessary provisions and supporting regulations of the New York Labor Law. When the DOL comes knocking on your door, you need the skilled and knowledgeable legal counsel of a NYC DOL Investigation lawyer.

What the Wage and Hour Division Investigates

The WHD investigates varied businesses for several reasons but the foundation of the investigation is to make sure that employers comply with the rules of the Fair Labor Standards Act. The Wage and Hour Division does not always announce their investigation or their arrival, nor are they required to disclose the purpose of the investigation.

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Legal Scenario: What Would You Do?

Scenario

You own a restaurant in Manhattan and just received a letter from the NYC Department of Labor's Wage and Hour Division stating they will be conducting an on-site audit of your payroll records, tip credits, and overtime practices for the past three years. Several of your employees work split shifts and you're unsure whether your current pay practices comply with the FLSA and New York Labor Law spread-of-hours requirements.

What should I do to prepare for this Department of Labor investigation, and what are the potential consequences if they find violations?

Attorney's Answer

You should immediately gather all payroll records, time sheets, and employee agreements for the audit period, as Section 11(c) of the FLSA requires employers to maintain accurate records for at least three years. Under FLSA Section 16(c), the Department of Labor can recover back wages and an equal amount in liquidated damages for affected employees, and willful violations under Section 16(a) can result in criminal penalties including fines up to $10,000 and imprisonment. New York Labor Law Section 198 adds further exposure, allowing employees to recover six years of unpaid wages plus liquidated damages of 100% of the underpayment. An experienced attorney can conduct a privileged internal audit before the DOL arrives, negotiate with investigators to narrow the scope of the review, and potentially reduce your liability significantly.

This is general information only. Contact us for advice specific to your situation.

The subject of their investigations can involve topics that include the following:

• Anonymous complaints to the department
• Child labor compliance
• Minimum wage violations
• Discrimination violations
• Wage discrepancies and more

Records the DOL Requests