Facing a DOL Audit?
Rob Haddon
Corporate Magician Providing Magical Entertainment for Corporate and Private Events
If you’re facing a Department of Labor audit, you need to be prepared. First of all, the DOL usually doesn’t give you a lot of advanced notice, so make sure your files are ready for an audit all the time, is the best advice I can give. If you have files kept in a drawer that have not been scrubbed in a while, it may be time for your own internal audit. Also, understand that many times, an audit is requested when a disgruntled employee goes to a department of the DOL. They know what to look for, so you need to be prepared:
1. Even though you won’t get much notice, you can ask the auditor for time to get the documents together. They will usually allow that.
2. Designate one or two people to handle the audit. If you have an internal lawyer, that should be one of the people. A senior member of the staff should also be included.
3. Only show the documents requested, not everything in the file. It’s kind of like the Miranda Warning when they say anything you say can be used against you. Anything else they find that is suspect can and WILL be used against you.
4. Automate your files! Electronic files make getting ready for an audit much faster. If you have a payroll company handling your payroll, wage and hour disputes are much easier to handle with the electronic files. Any HR audits are also much easier with electronic files. You can easily search for what you need and get them to the auditor without risking them digging around in a file drawer.
5. Give the auditor a quiet place to work, and be nice to them!
6. Ask them to give you a report on what they find. Remember, their job is to find SOMETHING, so they will go over everything closely. You want to know any problem areas, even if it's not serious.
Over the years, we’ve handled a lot of DOL audits and EEOC claims. As long as you keep the correct records, and can keep your files updated, you’ll get through any actions.
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