New York Department of Labor Investigations: Employer FAQ
New York Department of Labor Investigation Lawyer
A New York Department of Labor investigation can create significant legal and financial concerns for an employer. The New York State Department of Labor (NYSDOL) investigates allegations involving unpaid wages, overtime, minimum wage, wage theft, employee classification, payroll practices, recordkeeping, and other potential violations of New York labor law.
The Law Office of Joseph Kilada represents employers and businesses throughout New York City and Long Island, including Manhattan, Brooklyn, Queens, the Bronx, Staten Island, Nassau County, and Suffolk County, in NYSDOL investigations, wage-and-hour complaints, audits, and enforcement matters.
The following fact sheet answers common questions employers have when facing a New York Department of Labor investigation.
What is a New York Department of Labor investigation?
A New York Department of Labor investigation is an examination by the NYSDOL into whether an employer is complying with applicable New York labor laws and regulations. Depending on the circumstances, an investigation may involve employee wages, overtime, minimum wage, payroll practices, employee classification, wage deductions, and required employment records.
An investigation may involve one employee, multiple employees, or broader employment practices affecting an entire business.
Why would the NYSDOL investigate my business?
The NYSDOL may investigate a business after receiving an employee wage complaint, information concerning potential labor-law violations, or as part of a Department-initiated enforcement investigation.
A complaint concerning one employee can sometimes result in questions about whether similar practices affected other employees. Receiving an investigation notice does not necessarily mean the employer violated the law, but it should be addressed promptly and carefully.
What should an employer do after receiving an NYSDOL investigation notice?
An employer that receives an NYSDOL investigation notice should first review the notice carefully, determine what issues are being investigated, identify any response deadlines, and preserve potentially relevant records.
Depending on the circumstances, relevant records may include payroll records, time records, wage statements, personnel records, employment agreements, policies, and other documents concerning employee compensation and working hours.
An employer facing a significant investigation should consider consulting a New York employment lawyer before making substantive statements or producing extensive records.
What records can the New York Department of Labor request?
The New York Department of Labor can request payroll and employment records that are relevant to the issues being investigated. Records may include payroll information, timekeeping records, wage statements, employee information, employment policies, and other documents concerning compensation and working conditions.
Employers should carefully review the scope of a records request and ensure that responsive information is preserved and accurately produced.
Can the NYSDOL visit my workplace?
The NYSDOL can conduct a workplace or field investigation when circumstances warrant it. A field investigation may allow investigators to examine workplace conditions, review records, and communicate with employers and employees.
An employer should understand the scope of a workplace visit and should not assume that an investigation is limited to the documents identified in an initial communication.
Can NYSDOL investigators interview employees?
Yes. NYSDOL investigators may interview employees and management as part of an investigation. Employees may provide information concerning hours worked, wages received, job duties, timekeeping practices, and other workplace issues.
Employers should not retaliate against or improperly interfere with employees because they have participated in a government investigation or exercised legally protected rights.
What issues does the NYSDOL investigate?
A New York Department of Labor investigation may examine a wide range of wage-and-hour and labor-law issues, including:
- Unpaid wages
- Unpaid overtime
- Minimum wage violations
- Wage theft
- Employee misclassification
- Payroll practices
- Improper wage deductions
- Recordkeeping violations
- Off-the-clock work
- Other alleged violations of New York Labor Law
The issues examined depend on the allegations and circumstances of the particular investigation.
Can the NYSDOL investigate employee misclassification?
Yes. An NYSDOL investigation can examine whether workers have been properly classified as employees or independent contractors. Classification can affect whether a worker is entitled to minimum wage, overtime, and other protections.
The appropriate classification generally depends on the actual circumstances of the working relationship and applicable legal standards, rather than simply the title or label used by an employer.
How far back can an NYSDOL investigation go?
How far back an NYSDOL investigation can go depends on the circumstances and scope of the investigation. The Department may examine the period identified in a complaint or investigation and, in certain matters, may examine a broader period.
Because the period under review can significantly affect potential wage liability, employers should determine the scope of an investigation before assuming that only recent records are relevant.
How long does a New York Department of Labor investigation take?
The length of a New York Department of Labor investigation varies depending on its scope and complexity. Factors may include the number of employees involved, the amount of records requested, employer cooperation, disputed facts, and the availability of relevant evidence.
A straightforward investigation may be resolved relatively quickly, while a broader wage-and-hour investigation can take substantially longer.
What happens if the NYSDOL finds a violation?
If the NYSDOL finds a violation, the Department may require an employer to take corrective action, including payment of wages determined to be owed. Depending on the circumstances, interest, penalties, and other enforcement measures may also apply.
An employer that receives findings or an enforcement document should promptly review the allegations, calculations, deadlines, and available options.
What is an NYSDOL Order to Comply?
An NYSDOL Order to Comply is an enforcement order issued when the Department determines that an employer has violated applicable Labor Law requirements.
An Order to Comply may require payment of wages, interest, penalties, or other amounts. Employers receiving an Order should review it promptly because important deadlines may apply to payment or an administrative appeal.
Can an employer challenge an NYSDOL investigation finding?
An employer that disagrees with NYSDOL investigation findings may have administrative rights to challenge the Department’s determination, depending on the type of enforcement action involved.
An employer should review any Order to Comply or other formal determination promptly with counsel to determine whether an appeal or other response is appropriate and whether a deadline applies.
Should an employer hire a lawyer for a Department of Labor investigation?
An employer should consider hiring a New York Department of Labor investigation lawyer when an investigation involves substantial potential liability, multiple employees, extensive records, employee classification issues, disputed facts, or possible enforcement action.
An attorney can assist with reviewing the investigation, analyzing wage-and-hour issues, reviewing payroll and employment records, communicating with investigators, preparing responses, and evaluating potential defenses.
Can a New York Department of Labor investigation affect an employer in New York City or Long Island?
Yes. Businesses throughout New York City and Long Island, including Manhattan, Brooklyn, Queens, the Bronx, Staten Island, Nassau County, and Suffolk County, may face NYSDOL investigations.
The Law Office of Joseph Kilada represents employers throughout these areas in wage-and-hour investigations, Department of Labor complaints, audits, and related employment-law matters.
What should I do if my business is being investigated by the NYSDOL?
If your business is facing a New York Department of Labor investigation, you should take the investigation seriously, preserve relevant records, review the Department’s requests carefully, and understand your potential legal exposure before responding.
The Law Office of Joseph Kilada represents employers in NYSDOL investigations and wage-and-hour enforcement matters throughout New York City, the five boroughs, Nassau County, and Suffolk County.
Contact our office to discuss your Department of Labor investigation and your options for responding.
This fact sheet provides general information and is not legal advice. Every Department of Labor investigation involves different facts and circumstances. Contacting the firm or reviewing this website does not create an attorney-client relationship.