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:
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 audit occurs on their construction site. Such training should, at a minimum, include:
For more information, please contact Anthony Stergio.