The most common reason for a DOL investigation is an employee complaint. Or the employer could be operating in a targeted industry, such as manufacturing or the building services. Employees are most likely to complain when a job is redesignated by the employer from nonexempt status to exempt, when overtime pay is not approved, or when an employee is terminated.
Auditors have wide latitude to inspect records and interview employees.
Once an employer is notified that an audit is to be conducted, the employer should prepare for the investigation by conducting his or her own audit, immediately correcting compliance problems and preparing defense documentation. Make sure you're in compliance with the stricter of two laws. Review the job descriptions of the targeted jobs. Interview all the job incumbents and their managers to determine the accuracy of the job descriptions, to determine the actual duties being performed, and to determine whether timekeeping is accurate. Exemption classification interviews should pay close attention to the amount of time spent on nonexempt type duties and requirements for administrative exemptions.