Government Investigations on the Rise

June 12, 2012  |   Posted by :   |   YPHR Blog

Recently, we have seen more and more investigations and monetary penalization of companies by federal and State agencies for violations.  Penalties paid to the Department of Labor and other agencies support their budgets, making it in these agencies’ best interest to aggressively seek out violators.

Even if a company is found not to owe penalties, the estimated 40 to 60 hours spent satisfying the investigation can be crippling.  Additionally, if you are investigated by one agency,  you can expect that information to be shared with other agencies.  For example, if the DOL investigates your company to see if some of your independent contractors should in fact be employees, they will share their report with the IRS who could launch a tax investigation, or the EEOC who could investigate you for racial bias.

So what is a company to do?  Employment attorneys recommend that you show good faith in implementing federal and state recommendations – and be sure to document that you are in legal compliance.  If your company does become the subject of an investigation, answer all the questions asked as completely as you can – but limit any additional information you may be tempted to provide.  The less information you give, the less chance that something that you used in your defense will trigger  investigations by other agencies.

For more information or to make sure you are compliant with all of the latest laws and guidelines, contact YPHR.


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