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socrateaser
socrateaser, Lawyer
Category: California Employment Law
Satisfied Customers: 38879
Experience:  Retired (mostly)
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MY COMPANY WAS AUDITED AND FOUND NOT COMPLIANT FOR OVERTIME

Customer Question

MY COMPANY WAS AUDITED AND FOUND NOT COMPLIANT FOR OVERTIME PAY AND THE WANT ME TO PAY PENALTIES FOR THE FIRST 90DAYS WHICH IS 14000$$ BY THE NEXT 2DAYS OR THEY'LL PUT A HOLD ON THE MERCHANDISE I HAVE IN THE WAREHOUSE
AND AFTER THAT THEY'LL REVIEW AND FINE FOR THE RECENT 2YEARS
WHAT SHOULD I DO
Submitted: 5 years ago.
Category: California Employment Law
Expert:  nathanmoorelaw replied 5 years ago.
Thank you for your question and welcome to JustAnswer.com.

For what reason are they going to contact your customers?
Customer: replied 5 years ago.
BECAUSE WE WERE NOT COMPLIANT WITH OVERTIME PAY
LABOR DIVISION IS SAYING THAT MY CLIENTS ALSO HAVE THE OBLIGATION TO PAY
Expert:  nathanmoorelaw replied 5 years ago.
Okay. I am going to opt out so that another expert can review your question and assist you. Please be patient and someone else will be along momentarily to assist you.

Thanks,
Nate
Expert:  socrateaser replied 5 years ago.
Hello,

Sorry for the delay, but my colleague is not qualified to answer California Employment Law questions at justanswer.com, and the question appears to have been lost in the system until now.

The Division of Labor Standards Enforcement (DLSE) can impose penalities on your business and/or attach property only after obtaining a judgment against you in court. Typically, the DLSE will hold an administrative hearing first, where you have a right to defend yourself (called a "Berman" hearing). And, even if you lose, you have the opportunity to have the entire matter heard again by a Superior Court Judge, without considering any of the evidence from the administrative hearing.

At no time can the DLSE start contacting your customers so as to damage your business interests. I cannot imagine why a DLSE investigator would make such a threat, because it would give you grounds to sue the agency for a civil rights violation.

Regardless, you can refuse to pay and the DLSE will set a hearing with the administrative law judge within 90 days. At that time you can try to justify your actions, or try to prove that you are in compliance with the wage laws. You can also try to negotiate a settlement or a payment plan, if you believe you will ultimately lose this action.

And, of course, you are entitled to hire a lawyer to represent you in all of this. For an labor law attorney referral, see this link.

Hope this helps.

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Customer: replied 5 years ago.
IS THEE ANY WAY I CAN SPEAK TO YOU ON THE PHONE
Customer: replied 5 years ago.
TO SOCRATEASER,
CAN WE TALK OVER THE PHONE TOMMORROW
Expert:  socrateaser replied 5 years ago.
All correspondence must be conducted through this interface. No exceptions -- sorry.

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