Uptick in Department of Labor Audits of Construction Sites 
By Anthony G. Stergio, Andrews Myers, PC

The Houston region has seen a recent uptick in Department of Labor (“DOL”) audits focused on specific construction sites. In conducting these audits, the DOL typically chooses a particular construction site and targets both general contractors and subcontractors at the site. The DOL may either collect documentation from each construction contractor on site or conduct spot check interviews with employees of those various construction contractors. Recent DOL audit inquiries have concerned possible:

• Minimum wage violations.
• Underage worker violations.
• Overtime violations.
• Prevailing wage violations (on projects that receive federal funds).

The audit surge is a fulfillment of the Biden Administration’s promise to increase DOL oversight and compliance throughout the construction industry. Considering the escalation of audits, contractors should take preventive measures to evaluate whether their pay practices comply with federal law (and advise their subcontractors to do the same). Contractors should also conduct training for site managers on what to do if a DOL audits occurs on their construction site. Such training should, at a minimum, include:

• Who to immediately call if the DOL announces its presence.
• How to respond to documentation requests from the DOL.
• What to do if operation issues make a DOL audit difficult at the time of the DOL’s arrival.
• What to do with respect to interview requests for your (or a subcontractor’s) employees.
• Actions to take if the DOL wants to interview managerial/supervisory employees.

For more information, please contact Anthony Stergio.

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