Earlier this month, the U.S. Department of Labor (DOL) Wage and Hour Division (WHD) announced it recovered $84K in back wages and damages for 44 Honolulu workers. It also assessed $10K in civil money penalties for “willful and reckless disregard” of the Fair Labor Standards Act (FLSA).

WHD conducts investigations to ensure compliance with the FLSA and other laws it enforces. These investigations are often triggered by complaints, but WHD also initiates investigations on its own for a variety of reasons. WHD may target low-wage industries, the employment of vulnerable workers, rapid changes such as growth or decline in an industry, or business in a specific geographic area. WHD will not typically disclose the reason for the investigation.

What happens in an investigation?

According to the WHD Fact Sheet #44 (Visits to Employers), an investigation consists of the following steps:

• Examination of records to determine which laws or exemptions apply.
• Examination of payroll and time records, and taking notes or making transcriptions or photocopies essential to the investigation. 
• Interviews with certain employees in private.  
• Meeting with the employer to discuss whether violations have occurred and, if so, what they are and how to correct them.

The WHD investigator will identify themselves and present their credentials, as well as explain the process and records needed. Employers may be represented by their accountants or attorneys at any point in the investigation, and may present additional facts for consideration if there are any violations found.

What are the consequences if a violation is found?

There are a number of remedies and procedures WHD may pursue in the event of a violation. WHD may recover back wages and liquidated damages to be paid to employees, and assess civil money penalties to be paid to the government. WHD may also file lawsuits on behalf of employees for back wages and liquidated damages, and may seek an injunction to restrain violations of the law. Employees may also file private lawsuits to recover back wages, liquidated damages, and attorney’s fees and costs.

Avoiding violations

Since WHD investigations can occur at any time, with or without warning or a complaint, employers should ensure their wage and hour practices are in compliance with state and federal laws.

Common pitfalls include: 

• Identifying and paying for compensable time
• Calculating overtime hours and pay
• Classification of exempt and non-exempt employees
• Recordkeeping

To help employers navigate these and other issues, Hawaii Employers Council is hosting a webinar, “Understanding Wage and Hour Laws,” with attorney Ronald Tang on Thursday, September 29, 2022 from 9:00 am – 11:00 am. 

This webinar is open to the public, and HEC members receive a discounted registration fee. Click here to register.