DOL: We’re Hiring!

The Department of Labor (“DOL”) announced yesterday that the Wage and Hour Division (“WHD or “Division”) plans to hire 100 investigators this year. This would add enough people to restore its investigative workforce to just shy of the level at the end of the Obama Administration. Like the rest of WHD’s cadre of investigators, they will be tasked with rooting out minimum wage and overtime violations under the Fair Labor Standards Act (“FLSA”). They also will look into breaches of the Service Contract Act (“SCA”), the Davis-Bacon and Related Acts (“DBRA”) as well as sick leave, contractor minimum wage, and other Executive Order mandates.

In announcing this recruitment effort, Jessica Looman (Acting Administrator of WHD) stated that the Division anticipates “significantly more hiring activity later in fiscal year 2022” presumably beyond this group of 100. Obviously, WHD wants more boots on the ground as a general proposition; however, we suspect that the agency may be a bit disappointed wage payment recoveries dipped in FY2021. At the end of the fiscal year, WHD had recovered back pay of just over $200 million combined for FLSA and Government Contractor underpayments. (Recent history of FLSA recoveries can be found here; Government Contract recoveries are posted here.)

One issue that employers, especially federal contractors, should bear in mind is that new investigators will not be fully up to speed regarding the complexities of SCA and DBRA compliance. When you overlap SCA and DBRA requirements with paid sick leave and contractor minimum wage obligations, you and the investigator both may be vexed by the puzzle that’s before you. That’s why a solid grounding in these laws is vital.

As counsel to employers, we strive to provide our clients with the knowledge to ensure that they meet the requirements of these laws. When we’re representing employers in response to an investigation, we aim to ensure that investigators don’t find violations where none exist and, if errors were made, that the consequences cure the harm without inflicting undue punishment for innocents errors. Having been involved with these laws for many years, we find that know-how and experience are our most powerful tools to ensure that all involved understand these laws and how they work.

So, get ready for an influx of earnest, energized investigators. Your preparation and record keeping will demonstrate a sincere commitment to compliance and, hopefully, convince investigators to set aside their distrustful instincts. You deserve recognition as an honest employer and not be tagged as one of the bad apples they’re primed to hunt down.