DOL Minor Labor Law Audit Help!!!!

Squishypig

[font size="1" color="#FF0000"]LAST EDITED ON 04-24-02 AT 11:39AM (CST)[/font][p]Does anybody have any experience with bargaining penalties with the DOL? One of our franchises has just been hit with $55,000+ in fines and the owner was told to offer a settlement letter to reduce the fines. He has been in business for less than 7 months and anything above even $5,000 would put him out of business. All the violations were within his first month of operations and he has not violated the law since the audit and has the records to prove it.

Can anyone offer any advice or a resource about bargaining down these fines?

Don D

This is not one you or the new business owner would want to pursue in 'the forum'. Sounds like he's pretty cash-poor operationally; however, a few hundred bucks for a labor attorney's opinion would be the way to go with this.

Margaret Morford

I asolutely agree with Don D. I'd get this guy some legal help. However, if he will not get legal help, I'd suggest that he try to go down to the DOL in person or at least arrange a telephone call to try to negotiate the fines. It's always easier to do in person or via telephone than by letter. He should admit he was wrong, tell them he was new in business, point out that he's had no violations since the beginning of the business and tell them that a fine of this nature given his current profitability will put him out of business. Make a fairness arguement that the purpose of fines are to ensure that an employer learns his/her lesson - That $5,000 is as punishing to him as $50,000, except that he gets to stay in business and continue to employ everyone that works for him - That he's clearly demonstrated that he's learned his lesson, etc. Good luck.

I've managed several of these audits for clients and it is always best to try to get the auditor to recommend "no fines" than try to fix it on appeal. I've gotten one reduced from $50,000 to $5,000 on appeal. I called the auditor first and pleaded my case to him before I met with his boss to appeal. In your case, I would call the auditor and explain to him/her that you wanted to warn him/her that you have to appeal the fines because to do otherwise will put you out of business. You wanted to be upfront with the auditor. Then tell the auditor what you plan to say on appeal. Explain to him/her that you hope they will support reducing the fines because that would go a long way to helping you stay in business.

Margaret Morford
theHRedge
615-371-8200
[email]mmorford@mleesmith.com[/email]
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