DEPARTMENT OF LABOR AUDIT DOCUMENTS

Steven Cesare, Ph.D.

In follow-up from last week’s posting about the Massachusetts business owner who was visited by the Department of Labor as part of an audit investigating improper wage and hour practices, here is the formal list of documents he had to provide as part of the audit process.

“In order to conduct the investigation with as little disruption to your business operations as possible, please have available for inspection, all documents providing the following information for the last three years enterprise-wide unless indicated otherwise, ending with your last completed payroll:

Your company’s federal EIN.
Your company’s exact legal name, and all other names used by the company (e.g., “Doing Business As” names).
Names, titles, home addresses, email addresses, and telephone numbers of all business owners and company officers (e.g., President, Treasurer, Secretary, Board of Directors and other Corporate Officers) along with a company organizational chart if you have one. Also provide the percentage of ownership each person holds within the company.
Copies of federal tax returns, along with all attached schedules, for years 2022, 2023, 2024 and the Profit and Loss Statement for year 2025 and 2026, YTD.
Gross sales figures for years 2022, 2023, 2024, 2025, and 2026, YTD.
Payroll records for each pay period for employees and any other individuals who currently or formerly worked for the company over the past 3 years that shows their rates of pay, hours, gross earnings, and deductions for all employees during this period, from years 2023 to 2026, YTD (include any cash logs for wages paid, and hours worked that are not reflected on payroll records).
Daily time records which indicate hours worked each workday and total hours for each workweek for the past 3 years 2023-2026, YTD, for all employees for whom hours were recorded. If the time system records are not available, provide copies of employee schedules or records that correlate with the hours worked (include a description of meal breaks and how they are documented).
A list of all current and former employees for the past 3 years (2023-2026, YTD), which includes their full names, addresses, and telephone numbers. Please list the occupation of each employee and their hire and termination dates (include a description of duties if not otherwise indicated on payroll or time records). If nicknames or another alias is used for the employee
A list of the full names, addresses, phone numbers, dates of birth, hire dates and termination dates for any employee under the age of 18 you have employed during the past 3 years (2023-2026, YTD), along with any proof of date of birth records used. If nicknames or another alias is used for the employee, please provide the employee’s nickname along with their full name in which the nickname is associated with.
A listing of all salaried employees for the past 3 years, with job titles, salary information, and whether each employee is considered exempt or non-exempt. If the employee has been determined to be exempt, and which exemptions are being claimed (e.g., executive, administrative, professional).
The payroll and corresponding time records for the two most recently completed work weeks.
Copy of general ledger records for years 2022, 2023, 2024, 2025, and 2026, YTD. Please provide these in excel format if possible.
A copy of the FMLA policy, if applicable.
1099 forms for the above establishment for 2023, 2024, 2025 and 2026 (if applicable);
Copy of your organization’s company or employee handbook (if applicable);
List of all out-of-state based vendors used in the last three years.”

That is a lot of documents, for a lot of employees, across a lot of years.

Based on the scope, depth, and historical span of these records, do you think the Department of Labor would find any wage and hour violations at your company?

Would the fines and penalties associated with all the wage and hour issues at your company “start at $300,000?”

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