Common Department of Labor (DOL) Complaints and How Employers Can Avoid Costly Mistakes
- Ashley Boaz
- Feb 19
- 5 min read
Updated: Apr 2
Ensuring compliance with labor laws is not just a legal necessity—it’s a cornerstone of sustainable business success. Many business owners and HR professionals aim to do right by their teams, yet even with good intentions, it’s easy to unknowingly breach Department of Labor (DOL) regulations. The result? Fines, lawsuits, and reputational harm that can ripple across the entire organization.
Understanding the most frequent DOL compliance violations is critical for any employer looking to mitigate risk, maintain workforce trust, and avoid costly missteps. This article dives into the most common labor law issues employers face and provides actionable HR best practices to ensure compliance and support long-term operational success.
1. Wage and Hour Violations
Wage and hour violations are among the most frequently reported issues with the U.S. Department of Labor. These infractions typically fall under the Fair Labor Standards Act (FLSA), which governs federal standards for minimum wage, overtime pay, and recordkeeping.
Common Wage and Hour Infractions:
Failure to pay minimum wage – Employers must meet or exceed the highest applicable minimum wage—federal, state, or local.
Improper overtime pay calculations – Employees classified as non-exempt must receive time-and-a-half pay for hours worked beyond 40 per week.
Faulty timekeeping practices – Inadequate or inaccurate tracking of employee hours can result in unpaid wages.
Employee misclassification – Incorrectly labeling workers as exempt or as independent contractors when they qualify as non-exempt employees.
How to Maintain FLSA Compliance:
✅ Perform Regular Payroll Audits: Periodic audits help uncover discrepancies before they escalate into DOL complaints.
✅ Implement a Robust Timekeeping System: Digital time-tracking tools improve accuracy and accountability in wage records.
✅ Stay Current on Overtime Laws: Ensure managers and HR personnel understand who qualifies for overtime pay under FLSA guidelines.
✅ Reevaluate Job Classifications: Misclassification can lead to back pay liabilities and penalties. Review job descriptions annually to ensure proper classification.
2. Employee Misclassification: Independent Contractors vs. Employees
Improper employee classification is one of the most scrutinized areas of labor law compliance. Many businesses unintentionally misclassify workers to simplify operations or reduce payroll costs—but doing so can result in audits, IRS penalties, and even class-action lawsuits.
Key Classification Issues:
Labeling employees as independent contractors to avoid paying benefits and taxes.
Overlooking control factors, such as providing company tools or direct supervision, that typically indicate employee status.
Strategies to Ensure Proper Worker Classification:
✅ Apply the IRS and DOL Standards: Use the Economic Realities Test and Common Law Test to evaluate work arrangements objectively.
✅ Assess Supervision and Control: If a worker is under direct supervision and performs tasks central to the business, they are likely an employee—not a contractor.
✅ Seek Legal or HR Consulting Support: When classifications are unclear, consult with legal counsel or an HR compliance consultant to reduce risk.
3. FMLA Compliance Violations
The Family and Medical Leave Act (FMLA) gives eligible employees the right to take up to 12 weeks of unpaid, job-protected leave for specific personal and family health-related reasons. However, missteps in applying FMLA rights are alarmingly common and can lead to serious legal consequences.
Common FMLA Violations:
Denying qualified employees their entitled leave
Failing to inform employees of FMLA rights and procedures
Retaliation for taking FMLA leave
Refusing to reinstate employees to their original or equivalent roles
Tips for Maintaining FMLA Compliance:
✅ Educate Managers and Supervisors: Equip leadership with training on FMLA compliance to reduce unintentional violations.
✅ Clearly Outline Leave Policies: Ensure your employee handbook includes detailed FMLA procedures and eligibility requirements.
✅ Track and Document Everything: Maintain thorough records of leave requests, communications, approvals, and return-to-work actions.
4. OSHA Safety Regulations and Workplace Hazards
A safe workplace is a lawful workplace. The Occupational Safety and Health Administration (OSHA) holds employers accountable for maintaining a safe and health-conscious work environment. Non-compliance with OSHA safety regulations can lead to major fines, injury claims, and a tarnished reputation.
Common OSHA Violations:
Inadequate safety training or lack of training records
Failure to provide or enforce use of personal protective equipment (PPE)
Underreporting or failing to report workplace injuries
Retaliating against employees for reporting safety concerns
OSHA Compliance Best Practices:
✅ Conduct Regular Safety Audits: Inspect your facilities often to detect and correct hazards proactively.
✅ Offer Routine Safety Training: Reinforce safe practices with hands-on and virtual training modules.
✅ Maintain Comprehensive Safety Records: Document training sessions, safety drills, and all incident reports to show due diligence.
✅ Promote a Culture of Safety: Encourage employees to report risks without fear of retaliation, and respond to all concerns promptly.
5. Workplace Discrimination and Harassment Complaints
Under Equal Employment Opportunity Commission (EEOC) guidelines, it is unlawful to discriminate against employees based on race, gender, religion, age, disability, sexual orientation, or other protected classes. Still, many employers fall short when it comes to preventing workplace harassment and discrimination.
Common EEOC Complaints:
Biased hiring, promotion, or termination practices
Creating or allowing a hostile work environment
Failure to act on reported harassment or discrimination
Retaliation after an employee reports wrongdoing
Creating an Inclusive and Compliant Work Environment:
✅ Establish Anti-Discrimination Policies: Clearly define zero-tolerance standards for harassment and discrimination in your workplace.
✅ Provide Regular Sensitivity and Inclusion Training: Conduct annual training sessions covering diversity, equity, inclusion, and harassment prevention.
✅ Implement Anonymous Reporting Mechanisms: Employees should be able to report concerns safely and confidentially.
✅ Take Prompt, Documented Action: Investigate all complaints thoroughly, and apply appropriate disciplinary action when necessary.
6. Retaliation Claims and Whistleblower Protections
Retaliation is now the most common complaint received by both the DOL and EEOC. Employers must tread carefully when employees raise concerns about wage theft, safety violations, or discrimination. Retaliatory actions—even subtle ones—can lead to severe consequences.
Examples of Retaliation:
Demoting, firing, or reducing pay after a complaint
Issuing unjustified poor performance reviews
Creating a hostile environment post-complaint
Steps to Avoid Retaliation Claims:
✅ Promote Transparent Communication: Address complaints with professionalism and fairness, not punitive action.
✅ Train Supervisors on Labor Law Compliance: Ensure leadership understands what constitutes retaliation and the legal risks involved.
✅ Maintain Detailed Performance Records: Clear, objective documentation helps disprove unfounded retaliation claims.
✅ Strengthen Your Whistleblower Policy: Encourage ethical reporting by protecting employees who speak up.
Proactive Labor Law Compliance Is the Smartest Business Strategy labor law compliance, wage and hour violations, HR best practices
The cost of non-compliance—whether through FLSA violations, misclassified workers, or OSHA failures—can be immense. Legal fees, government fines, and lost employee trust are just the beginning. The smarter approach? Cultivating a proactive, compliant workplace culture that puts your business on stable ground.
By focusing on HR best practices, regular audits, employee training, and accessible reporting mechanisms, companies can prevent most compliance issues before they arise. It’s not just about avoiding penalties—it’s about building a business that retains top talent, mitigates risk, and grows with integrity.
Partner with Experts in HR Compliance and Business Operations
At Mint Conceptions, we specialize in guiding businesses through the complexities of labor law compliance, HR consulting, and operational strategy. Whether you’re navigating classification issues, trying to reduce workplace risks, or simply want to fortify your HR policies, we offer custom solutions to help you avoid the pitfalls of non-compliance.
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Contact Mint Conceptions today to protect your business, empower your team, and strengthen your operational foundation.
Final Takeaway labor law compliance, wage and hour violations, HR best practices
Labor law violations are more than just technicalities—they reflect the internal health and ethics of a company. Investing in compliance doesn’t just reduce legal exposure—it builds a business that employees trust and customers respect. With a proactive mindset and expert support, you can navigate today’s complex employment landscape with confidence.
labor law compliance, wage and hour violations, HR best practices
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