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Government Accountability Office Critical of Wage-Hour Division Performance

In a recent report, the Government Accountability Office (GAO) concludes that the Department of Labor’s Wage-Hour Division (WHD) is inadequately investigating complaints.  GAO developed a number of case studies by obtaining and analyzing data from WHD for over 70,000 closed case files from fiscal years 2005 to 2007.  GAO then reviewed WHD documents and obtained information from publicly available sources in order to determine facts about the employers that had complaints filed against them.  The Office plans to continue its work in this area to determine if the identified case studies are indicative of systematic problems in WHD.

Examples of inadequate WHD responses identified in the study include rejection of complaints, failure to adequately investigate complaints, and/or delay in investigations.  GAO reports that in some cases, by the time a complaint was assigned to an investigator, the statute of limitations for assessing back wages was close to expiring.

The GAO conclusion:

Case studies show that WHD inadequately investigated complaints from low-wage and minimum wage workers alleging that employers failed to pay the federal minimum wage, required overtime, and failed to issue a last paycheck. In the majority of the case studies, low-wage complainants were advised of their option to hire an attorney after WHD determined no action would be taken on their behalf.

Read the rest of the report here.

Posted on Thursday, July 17, 2008 at 03:00PM by Registered Commenterworkplacehorizons.com | Comments Off

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