It would have been easier for me to give you a thorough and complete answer if you answered my follow up questions, but I can still provide some guidance to you without those answers.
Normally, when you are contacted by the labor department it is due to one of two reasons.
1) An employee complaint that has prompted an investigation or
2) An audit that has been scheduled randomly or due to something appearing possibly wrong.
That said, if it is a random audit, it will just be an inconvenience (and obviously a bit nerve racking) to have to meet with someone from the labor department.
If there has been an employee complaint, this is likely the first step in an investigation, which will possibly determine if the investigation goes any further or not.
Ultimately if you are found to have committed a labor code violation of some type, you would be possibly looking at having to pay unpaid compensation to an employee, and possibly having to pay penalties and fees to the employer and/or labor board for the violation if you are ultimately found to have committed some wrongdoing.
This would necessarily entail that you are either brought before the labor board or brought to court, so you will have the opportunity to defend yourself and your agency from any accusations made against you at that time if need be.
Since my goal is to provide you with excellent service today, please let me know if you have any follow up questions.
If not, please remember to rate my answer positively so I get credit for my work!
Thanks and best of luck!