Department of Labor Given Failing Grade
When Hilda Solis was confirmed as Secretary of Labor, I noted that employers could expect more aggressive investigations by the DOL. In light of a new report issued by the Government Accountability Office, the nonpartisan auditing arm of Congress, you can bet your bottom dollar on increased DOL activity.
The GAO report covers a nine-month investigation which reviewed actual complaints, as well as complaints filed by undercover agents posing as aggrieved workers. Half of the undercover complaints weren’t even recorded by the Wage and Hour Division of the DOL. Most of the others were mishandled.
For example, there was no investigation of a complaint that under-age children were working during school hours at a meatpacking plant. An agent posing as a dishwasher who hadn’t been paid overtime for 19 weeks waited four months for a return call and was then told it would take 10 months to begin an investigation.
The review of real complaints wasn’t any better. The GAO discovered the DOL had waited 22 months to investigate overtime claims of restaurant workers owed $230,000. Workers at a boarding school were owed $200,000 in overtime, but when the employer offered $1,000 in back wages, the DOL simply dropped the case.
The GAO was, of course, grading the the Bush Administration’s DOL, but its findings give Secretary Solis ammunition for her plan to crack down on employers that violate the law. She plans to increase her staff by a third, hiring 250 investigators. Solis says “she’s the new sheriff in town.” The GAO says she’s “facing the wild, wild West of wage theft” by employers.
If you haven’t done an internal wage and hour audit recently, now might be a good time. In any event, get ready. The new sheriff and her posse are saddling up.
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About Chris Parker
Chris Parker's practice focuses on the representation and counseling of companies in matters pertaining to the workplace and the protection of their intellectual property and trade secrets. In addition to serving as an advocate for clients, Mr. Parker is also trained as a mediator and frequently serves as a third-party neutral.
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Jimmy Daniel provides counseling to businesses of all sizes related to the employment relationship. He assists in the drafting of employment agreements, policies, and handbooks, as well as provides guidance related to compliance with federal, state, and local legislation such as the Fair Labor Standards Act and the Family and Medical Leave Act.
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While serving in an Of Counsel relationship with the firm, Mr. Bridgesmith also serves as the Executive Director at the Institute for Conflict Resolution at Lipscomb University and as an officer and principal in Strategic Resolutions Group, LLC. In these roles, Mr. Bridgesmith brings over 30 years of legal experience in dispute resolution and innovative workplace strategies to clients, students and business entities alike.
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This report is very disappointing. I believe most employers try to comply with the law, and it can be upsetting when a mistake gets blown out of proportion. The DOL, however, is there to protect our workers and guide employers. I would hate to think someone I know could be working at a non-complying employer and get so little response from the organization there to protect them. And the consequences are, or course, that the rest of us will have to ultimately pay for it.