FEDERAL CRIMINAL LAWYERS

Investigated by the NYC Department of Labor

So, you got a letter from the NYC Department of Labor. It says they’re investigating your business for potential labor law violations. Your heart sinks, what does this mean? Are you in serious trouble? How will this impact your company? Take a deep breath. We’re here to walk you through exactly what a DOL investigation entails, and what your next steps should be.

Understanding the Investigation Process

First things first, let’s go over how this whole investigation process typically works:

• The DOL receives a complaint about your business from a current or former employee, alleging violations of labor laws like unpaid wages, improper deductions, lack of overtime pay, etc.
• They send you an initial letter announcing their investigation and requesting a bunch of records, payroll documents, timesheets, policies, etc. This is just the beginning.
• An investigator will likely visit your workplace to conduct interviews with you, managers, and employees. They want to get a clear picture of what’s really going on.
• The investigator digs through all the records and information to determine if any violations occurred. If they find issues, they’ll let you know their findings.
• You’ll get a chance to resolve any violations, which usually means paying back wages, penalties, etc. If you can’t reach an agreement, it could end up in court.

So in summary, it’s a lengthy process, but it all starts with that initial letter announcing the investigation. Which brings us to…

First Step: Don’t Panic, But Don’t Ignore It Either

Getting that letter can be scary, no doubt. But freaking out won’t help. Take a moment, breathe, and resist the urge to rip it up or toss it aside. That would be a huge mistake. Ignoring a DOL investigation can lead to hefty fines and penalties down the road. They have a lot of power here. The smarter move? Bring in professional legal help right away. Which brings us to…

Second Step: Hire an Experienced Employment Lawyer

You don’t want to go into this alone. Labor laws are incredibly complex, with tons of nuances. One misstep could seriously hurt your case and your business. That’s why it’s critical to hire an experienced employment lawyer as soon as you receive that investigation letter. Look for one who has directly dealt with DOL cases before and really knows the ins and outs. At our firm, Spodek Law Group, we’ve guided countless businesses through DOL investigations from start to finish. We know exactly what to expect and how to protect your rights every step of the way. Your lawyer will take the lead on corresponding with the DOL, submitting records, handling interviews, negotiating settlements if needed, pretty much everything. This allows you to focus on running your business while they handle the legal mess.

What Not to Do

Before we go any further, let’s cover some major don’ts when it comes to a DOL investigation:

• Don’t destroy any records or documents, this could be criminal obstruction
• Don’t lie or provide false information, also illegal, and will hurt your case
• Don’t simply accept any allegations without scrutiny, get a lawyer to fight for you
• Don’t pay employees “under the table” to avoid scrutiny, the DOL will find out
• Don’t ignore any deadlines from the DOL, this could lead to harsher penalties

The key here is to take this seriously and respond appropriately with help from legal counsel. Which brings us to…

The Investigator Site Visit: What to Expect

At some point, the DOL investigator will likely request to visit your workplace and conduct in-person interviews. Here’s a quick overview of what that will entail:

• They’ll want to tour your facility and observe operations
• The investigator will ask you, managers, and employees questions
• Topics will include pay practices, timekeeping, employee classifications, etc.
• Remain calm and cooperative, but avoid admitting to any violations
• Have your lawyer present to ensure your rights are protected

The investigator will use this visit to try and poke holes in your records and policies. Having an attorney by your side is crucial to control the narrative.

If Violations Are Found: The Settlement Process

Unfortunately, if the DOL does find legitimate violations of labor laws at your company, they’re going to demand corrective action. This usually means:

• Paying back wages to affected employees
• Paying statutory damages like liquidated damages and civil penalties
• Updating policies and practices to ensure future compliance

Your lawyer will work to negotiate the best possible settlement terms for you. The goal is to minimize the financial hit as much as possible while still resolving the issues. If a settlement can’t be reached, the DOL can take legal action and pursue the money they believe you owe. This could lead to a court battle, which no business wants. That’s why it’s so important to have skilled legal representation from the very start. With the right lawyer, you can avoid an expensive, drawn-out court case over DOL violations.

Protecting Yourself Moving Forward

Even after resolving any violations, you need to take steps to protect your business from future DOL issues. Some tips:

• Conduct labor law compliance audits periodically
• Update employee handbooks and policies as needed
• Implement robust timekeeping and payroll practices
• Provide labor law training to managers and supervisors
• Keep immaculate records of hours worked, pay stubs, etc.

An ounce of prevention is worth a pound of cure. By being proactive about compliance, you can minimize your legal risks down the road. At the end of the day, no business owner wants to go through a DOL investigation. But if it happens to you, remember, you have rights, and you need to exercise them properly with legal help. Don’t go it alone. Don’t ignore it and hope it goes away. And definitely don’t try to handle it yourself and risk making costly mistakes. Bring in an experienced lawyer to fight for your interests every step of the way. At Spodek Law Group, we’ve seen DOL investigations from every angle. We know the tactics they use, the laws they enforce, and the best way to defend you. If you’re staring down an investigation, we’re here to be the aggressive advocate you need. It’s our job to help you protect your business, your money, and your future from the very first letter all the way through to the final resolution. All you have to do is make that first call.

Navigating a NYC Department of Labor Wage and Hour Investigation

Wage and hour laws set labor standards for minimum wage, overtime, employee classification and more. Businesses of all sizes must stay compliant or risk penalties. If the NYC Department of Labor suspects violations at your company, you could face a wage and hour investigation. Here’s a roadmap for employers on how to navigate this process:

The Investigation Begins: Responding to the DOL’s Initial Request

It all starts with a letter or email from the DOL, stating they’ve received a complaint about your pay practices. This is just the opening salvo, now the DOL wants to see records to determine if the allegations have merit. Their initial request will likely ask for a wide range of documents like:

• Employee lists with personal information
• Payroll registers and pay stubs
• Timesheets and time records
• Notices and policies given to employees
• Schedules and work logs
• Any other payroll data or wage records

Basically, they want to see how you track hours, calculate pay, classify workers, and more. Don’t ignore this request or provide incomplete records, that can be viewed as obstruction. Instead, work closely with an experienced employment lawyer to gather the required documents and submit them properly and on time. This helps set the right tone for cooperating with the investigation.

On-Site Inspection: Preparing for the Investigator’s Visit

In many wage and hour cases, the DOL investigator will request an on-site inspection of your workplace. This allows them to observe operations firsthand and interview parties like:

• You and other company leadership
• HR personnel involved in pay/timekeeping
• Managers who supervise employees
• Current and former employees themselves

To prepare for this visit, meet with your lawyer to review key topics like:

• Your company’s pay practices and job classifications
• Timekeeping systems and procedures
• Meal and rest break policies
• Any complaints or issues raised in the past

Your lawyer can help craft responses to anticipate questions the investigator may ask. They’ll also ensure you understand your rights, like the right to have an attorney present for any interviews. Having legal counsel throughout this process is vital. The investigator will be looking to build a case for violations, your lawyer is there to protect your interests.

Violations Found: Understanding DOL Findings and Penalties

If the DOL‘s investigation does uncover legitimate wage and hour violations at your company, you’ll receive their findings along with a demand to take corrective action. Common violations the DOL may identify include:

• Failing to pay minimum wage or overtime properly
• Improper employee classification (exempt vs non-exempt)
• Illegal deductions from wages
• Not providing required meal breaks
• Improper calculation of “hours worked”
• Lack of required notices or postings

For any violations, the DOL will calculate the back wages, liquidated damages, and civil penalties you now owe to employees and the agency itself. The amounts can add up quickly depending on the severity of the case.