January Congruity Q&A: Wage & Hour Audit / Davis-Bacon

Question:
When the Department of Labor's Wage and Hour Division (WHD) conducts an unannounced investigation to determine compliance with the Davis-Bacon Act, is the auditor permitted to speak with employees?

Answer:
"Yes". As with any investigation conducted by the WHD for enforcement with federal labor standards, an auditor is permitted to speak with employees privately and without advance notice during an investigation. 

The WHD is charged with enforcing the Davis-Bacon Act , a law that requires that employers who have federal contracts over $2,000 for the construction or repair of public buildings or public works pay certain prevailing wages and fringe benefits to the laborers and skilled tradesmen employed under the contract. According to the WHD, investigators have the latitude to initiate unannounced investigations in order to directly observe normal business operations and determine factual information quickly. An investigation may include review of staff, payroll records, contract assignments, or other fact-gathering sources.

Although these investigations may be conducted for various reasons, many are initiated by employee complaints. Check your contracts and audit your records to ensure that your pay practices are in line with the prevailing wage and fringe benefits rates.

For more information contact Congruity's team of professionals at: 844.247.4100.