Under the FLSA, an employee may not substitute accrued compensatory time for overtime pay. Employees of public employers may substitute accrued compensatory time for overtime pay. Wage and Hour Investigations Department of Labor representatives are authorized to investigate and gather data concerning wages, hours and other employment practices. Enter and inspect the employer's premises and records without a subpoena. Employers generally do not know the reason for the investigation because investigators are required to treat complaints confidentially.
Investigations generally extend back two years.
Investigators usually interview employees to test the adequacy and accuracy of the records and to aid and determine the validity of alleged violations. Interviews are conducted outside the presence of employer or employer's attorney and all information given by employees is kept confidential. When fact finding is complete, investigator will hold a conference with employer and inform employer of results. Where employer has corrected past monetary violations by full payment of back wages prior to an investigation, the investigator will not treat those as violations. Investigators will not treat minor bookkeeping errors as violations.