The company received a Department of Labor inquiry following an anonymous complaint about overtime practices. The owner had been managing payroll informally, with inconsistent time tracking, verbal agreements on hours worked, and confusion about overtime eligibility for different roles. The company faced potential back wages, penalties, and reputational damage if violations were found. They needed immediate help understanding their exposure, remediating issues, and responding to the DOL professionally. Local HR consultants quoted $20,000 to $30,000 for compliance work but had limited experience with DOL investigations in blue collar industries.
Stone Capital Partners conducted an emergency compliance audit over three weeks:
- Reviewed payroll records, time tracking systems, and employee classifications for the past three years
- Identified multiple wage and hour violations including improper overtime calculations, missed meal break premiums, and misclassification of crew leaders as exempt
- Quantified the company's exposure and developed a remediation plan that included back wage calculations and process corrections
- Implemented compliant time tracking systems and trained managers on proper overtime rules, break requirements, and record keeping
- Prepared documentation and responses for the DOL inquiry, working alongside the company's attorney
- Created ongoing compliance policies and manager training to prevent future violations
The DOL investigation concluded with minimal penalties after the company demonstrated good faith remediation efforts. Total back wages and penalties were under $18,000, far less than the potential six-figure exposure identified in the audit. More importantly, the company now operates with compliant systems that protect against future risk. The owner noted that Stone Capital Partners understood the realities of seasonal, hourly workforces in ways that generalist consultants did not, and the practical solutions were implementable without disrupting operations. The company has continued working with Stone Capital Partners for ongoing HR compliance support.
