Fast Food Restaurants -- Be Prepared for a DIR Audit
Fast Food Restaurants -- Be Prepared for a DIR Audit

Lately, Deputy Labor Commissioners have been making unannounced visits to fast food stores in Los Angeles County to conduct audits. They arrive, sometimes alone, and sometimes in pairs, and ask for the manager.  The Deputy Labor Commissioners insist on conducting the audit while they are on the premises, and they have not been amenable to requests to come back on a date and time that is more convenient.  Below, please find useful information about the types of information that will be sought by the Deputy Labor Commissioners if you are subject to such an audit.

For what are the Deputy Labor Commissioners looking?  

  1. Minimum Wage compliance
  2. Paid Sick Leave compliance

What other information/documents do they request?

  1. Evidence of workers’ compensation coverage
  2. Posters
    • Paid Sick Leave
    • Pay Day Notice
    •  Industrial Welfare Commission Wage Order
    •  Workers’ Compensation Insurance Notice
  3. Check that all minors have permits
  4. Current Business License

What else will they do? 

  • Interview employees–asking if employees are being paid at least $20 per hour and are receiving their meals and breaks
  • Interview the manager – asking about compliance with the new minimum wage law and the Paid Sick Leave law 

What documents do employers need to have available to produce?

  • If possible, wage statements evidencing both the Minimum Wage and the Paid Sick Leave
  • Evidence of workers’ compensation coverage

How can employers prepare for this audit?

  • Train managers/assistant managers
  • Train employees
  • Review records for compliance
  • Ensure required posters are posted

Contact your AALRR counsel if you need assistance.

This AALRR post is intended for informational purposes only and should not be relied upon in reaching a conclusion in a particular area of law. The applicability of the legal principles discussed may differ substantially in individual situations. Receipt of this or any other AALRR publication does not create an attorney-client relationship. The Firm is not responsible for inadvertent errors that may occur in the publishing process. 

  © 2024 Atkinson, Andelson, Loya, Ruud & Romo

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