Workplace Investigations and Audits

Employee complaints often are perplexing to employers. An employer’s natural instinct is to respond immediately. Send an email. Decide to ignore a complaint. Fire somebody. But the best response for these, and most other complaints, is the same. Investigate first, then respond. A proper internal investigation consists of identifying an appropriate individual who then will conduct interviews, collect and review relevant documents, and offer an assessment of which facts are true and the merit of the positions of the parties involved. A well-conducted internal investigation not only will help reveal appropriate courses of action, but it also will provide legal protection by demonstrating an even-handed approach, rather than an emotional response.

Why Investigation Should Come Before Action

Caution, however, is warranted. A careful investigation by a competent investigator reduces legal risk. A careless investigation by an incompetent investigator increases legal risk. Our attorneys provide steady, experienced guidance to companies who wish to conduct their own internal investigations, and we serve as third-party investigators who prefer to outsource the process to seasoned professionals.

Even greater risks arise when employees submit complaints to administrative agencies that initiate government audits of a company’s labor and employment practices. Common examples of government audits include the Department of Labor’s Wage and Hour Division, which conducts audits of whether employees properly have been classified as exempt or nonexempt employees and correctly have been paid overtime; Immigration and Customs Enforcement (ICE) conducts audits of companies’ I-9 forms, which verify employees’ identity and authorization to work in the U.S.; and the Maryland Worker’s Compensation Commission and Unemployment Insurance Commission, which audit companies to determine whether any employees have been misclassified as independent contractors. Consequences may include order to pay back pay and benefits, as well as penalties, and interest.

Government Audits

Responding to government audits is anything but straightforward. While companies have an obligation to comply with legitimate government requests, there is no legal obligation to provide a single page of documents more than what is legally required. Yet, agencies notoriously request more documents than they are entitled to receive, knowing that companies often will comply blindly, assuming that the government would not try to deceive them. Every additional document produced will be scrutinized to find additional violations.

The Importance of a Qualified Investigator

During a government audit, expert legal guidance is essential. Our attorneys know the law and cooperate fully with government audits to produce the documents to which they are entitled – but no more. We serve as a trusted liaison with the investigator or auditor, knowing which situations call for cooperation, which call for negotiation, and which call for outright refusal. Companies simply should not respond to a notice of a government audit without strong legal representation.

Protecting Your Business Through Strategic Representation

The attorneys at Luchansky Law regularly represent employers during government audits and assist in achieving outcomes far more favorable than companies can achieve on their own.

Whether an employer is conducting an internal investigation or responding to a government audit, Luchansky Law provides the representation that will make the difference between legal protection and legal risk.