DOL Audit

dixied · September 2004

We have been notified by the DOL that we have been
"randomly" selected by for a payroll audit for the 2002 calendar year.
I have not been through a DOL audit. I've survived OSHA inspections
and OFCCP audit, and will add this to my list.
I was hoping to gain some insite
from those that have experienced this process.

Thanks

dynamite9551 · September 2004

there ain't no such thing as a "random" payroll audit by the DOL. If you have been selected - they have received a complaint from an employee (or perhaps a former EE) of your organization.

when these bad boys come in - they talk with all of the employees and look at all of your payroll records. double check your pay practices such as, exempt vs non-exempt ee's; overtime practices; travel policies (if in place) etc. they're looking for specifics! you may not know until after they leave - exactly why they are there!

if you're in violation tney will let you know. we had this happen about a year after our company relocated to another state. a disgruntled ex-employee (who was caught up in a layoff) lodged a complaint and next thing you know - guess who came to dinner! we did pay some employees incorrectly - although certainly not intentionally - they even investigated the employees who had terminated - to make a long story short - it cost us major $$$$$$$ in back pay and we immediately changed payroll policies and practices and are very strict now. we DO NOT MAKE EXCEPTIONS FOR ANY REASON!!!! and I am now on a "first name" basis with our local DOL office to say the least. anything i'm not sure about i call them for a rendering!!!!

good luck!

System · September 2004

dixied,

In case you didn't see it, we had an article in last week's HR Hero Line e-mail newsletter, "Who let the DOL out? Be ready for investigation"
[url]http://www.hrhero.com/hl/082704.shtml#feature[/url]

Good luck - it doesn't sound like fun.

James Sokolowski
HRhero.com

dixied · September 2004

Thank you both for your replies.
James, I didn't see the email newsletter, but I have it now.
Does it make any difference if it is on the state
vs. federal level? Our notice is from the state.

dd

Don D · September 2004

That might make a difference. I assumed meant the USDOL. Our state does not have a State DOL as such. Dynamite was right about there being no such thing as a random federal investigation. But, it could be a random state review. The state will only have authority to cite you for state violations and those jointly mandated.

E Wart · September 2004

You do need to make sure this is a Federal, not state audit. The state just wants to make sure they got all the UI dollars they should have. I have had several of these. (In fact the same state employee came to 2 different companies to do the audit). They come out and look at payroll records and then leave and never get back with you. Federal is much MUCH different. For your sake, I hope it is a state audit. (Also, if Federal comes out, good chance you may have a state audit in the near future, if they do this too.)
E Wart

DOL Audit

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