You asked what powers the state Department of Labor (DOL) has to investigate wage complaints including (1) limitations on an investigation's scope, (2) if an employer has the right to know who made a complaint and details of the complaint, and (3) what options an employer has in appealing a decision resulting from an investigation.

SUMMARY

DOL has broad powers to investigate a wage complaint including the authority to enter a business during usual business hours, examine payroll and other records, interview employees, and take testimony under oath. The complainant's identity is kept confidential to avoid potential reprisals against the employee, and complaint details are also kept confidential as they might reveal who made the complaint. The scope of the investigation is not limited to one person's complaint. Since DOL has the statutory authority to enforce wage and hour laws, if it finds evidence of other wage violations it may also act on them.

After an investigation, if DOL determines there has been a violation it sends a violation notice to the employer. The notice informs him of the civil penalty and includes notice of employer's right to request a hearing to show why he should not be penalized. In practice, DOL often seeks to mediate a settlement to the dispute. If the employer does not respond to the violation notice and does not pay the penalty, DOL may turn the case

over to the Attorney General's Office for court action to collect the penalty. In court, the employer has all the regular due process rights provided through the court system.

INVESTIGATORY AND CIVIL PENALTY POWERS

DOL has broad powers to investigate complaints regarding wages or workers compensation insurance fraud. Its authority to enforce wage and hour laws permit it to conduct routine audits on an employer's entire payroll records as well as investigate individual complaints. The law specifically authorizes wage-enforcement agents to enter a place of business during usual business hours, examine payroll and other records, interview employees, and even take testimony under oath (CGS Sec. 31-76a). The department may also call a hearing and issue subpoenas. Failure to cooperate with the investigation can result in a fine of $ 25 to $ 100 for each day such failure continues.

Most complaints, according to John McCarthy, legislative liaison for DOL, concern (1) late or non-payment of wages, (2) pay below minimum wage, and (3) failure to pay overtime.

The complainant's identity is kept confidential to avoid any potential reprisals against the employee, and details of the complaint that might reveal who made the complaint are also confidential. An additional reason to keep the complainant's identity confidential is that, while it is rare, sometimes a wage case can rise to the level of criminal charges.

Under state regulations, the labor commissioner can assess a civil penalty of $ 300 for each violation of the state's wage law in addition to any penalty or remedy provided under the specific section violated. The commissioner can levy a separate penalty for each individual employee affected by the employer's violation (Conn. Agency Regs. Sec. 31-71h-2).

PENALTY HEARING, APPEALS, AND COURT ACTION

When, after an investigation, DOL notifies an employer that he is subject to a civil penalty for a wage violation, it informs the employer of his right to a hearing to show why he should not be penalized (The notice will also include a statement concerning any unpaid wages due). A hearing is not granted unless the employer requests one in writing, states the reason for the request including facts that show no violation occurred, and DOL receives the request within 21 days from the date it mailed the violation notice to the employer (Conn. Agency Regs. Sec. 31-71h-3). The violation notice also informs the employer of his option to waive the request for a hearing.

The commissioner has sole discretion to determine whether the employer has stated adequate facts or legal grounds to warrant a hearing. If the commissioner rules a hearing appropriate, he sends the employer a written notice of the date, time, and place of the hearing. This notice informs the employer of his right to (1) be represented by an attorney and (2) present evidence and written or oral arguments. A hearing postponement can be granted if the employer's rights would be harmed by denying the postponement.

Following the hearing (or the employer's waiving of his right to a hearing) the commissioner may, at his sole discretion, modify or uphold the original penalty assessment. If the employer's request for a hearing is denied, the original civil penalty becomes final as far as administrative appeals.

In practice, DOL often seeks to negotiate an agreement and settlement to the dispute.

If the employer does not respond to the violation notice and does not pay the penalty, DOL may turn the case over to the attorney general for civil court action to collect the penalty. In court, the employer has all the regular due process rights provided through the court system. Likewise, in the rare situation where a case is severe enough to merit criminal charges, the employer has the usual due process procedures offered through criminal proceedings.

JM: ro