What Steps Should Employers Take After an FLSA Complaint Is Filed?

 Posted on March 21, 2026 in Employer Defense

Most employers don't expect an FLSA complaint until it happens. When it does, the pressure to respond quickly and correctly is real, and making mistakes early on can make the situation significantly worse.

If your business is facing an FLSA complaint, you’re not alone. The Department of Labor's Wage and Hour Division handles close to 30,000 FLSA minimum wage and overtime cases a year, and The Miller Law Firm, P.C. represents employers facing wage complaints. Our Schaumburg, IL FLSA litigation lawyer can help you respond the right way and protect your company from unnecessary exposure.

What Is the FLSA, and What Does It Require of Employers?

The Fair Labor Standards Act is the federal law that sets the rules for minimum wage, overtime pay, recordkeeping, and child labor. It applies to most private employers and covers employees who work in interstate commerce or who work for businesses that meet certain size requirements.

Under the FLSA, most employees must be paid at least the federal minimum wage. They must also receive overtime pay at one and a half times their regular rate for any hours worked over 40 in a week. When an employee believes these rules have been broken, they can file a complaint with the Department of Labor or file a lawsuit directly against the employer.

What Happens After an FLSA Complaint Is Filed?

When a complaint goes to the Department of Labor's Wage and Hour Division, an investigator may be assigned to look into it. That investigator can review your payroll records, talk to employees, and request documents going back several years. The process can move quickly, and what you say or provide during an investigation can affect the outcome.

If the complaint comes as a private lawsuit under 29 U.S.C. § 216, you will be served with legal papers. You will have a limited time to respond. Missing that deadline or responding incorrectly can result in a judgment against your business. Getting an attorney involved as soon as you learn of a complaint is one of the most important things you can do.

What Should Employers Do Immediately After Learning of an FLSA Complaint?

In addition to hiring an attorney, there are several steps you should take as soon as you hear about an FLSA complaint:

• Save all relevant records, including payroll data, time records, employment contracts, and any communications related to the employee's pay.

• Do not change, delete, or destroy any records, as doing so can lead to serious legal consequences.

• Identify which employees may be covered by the complaint and gather records related to how they were classified and paid.

• Do not retaliate against the employee who filed the complaint, as retaliation is its own separate violation under the FLSA.

Taking these steps quickly puts you in the strongest possible position going forward.

How Serious Are the Penalties for FLSA Violations?

The financial consequences of an FLSA violation can add up fast. Under federal law, employers found liable for unpaid wages may have to pay the amount owed plus an equal amount in liquidated damages. That means the total can be double the original unpaid wages.

Under certain circumstances, the time period for recovering back pay extends from two years to three years. That means more money can be claimed. A repeat violation could also result in civil penalties of up to $1,000 per violation.

Can an Employer Settle an FLSA Complaint?

FLSA disputes can be resolved through a negotiated agreement that avoids the cost and stress of a trial. However, FLSA settlements must be approved by a court or supervised by the Department of Labor. This is to make sure the employee's rights are protected. A settlement that is not properly approved may not actually end your legal exposure.

An attorney can look at the strength of the complaint, find weaknesses in the employee's claims, and negotiate a resolution that limits your risk and brings the matter to a clean end.

Schedule a Free Consultation With Our Schaumburg, IL FLSA Litigation Attorney

An FLSA complaint doesn't have to become a crisis. However, it does require a fast and careful response, and The Miller Law Firm, P.C. can help. Attorney Richard J. Miller brings a unique combination of legal skill and financial knowledge to every case. In addition to his law degree, he holds an MBA in Finance. That background gives him a deeper understanding of the business and financial side of wage and hour disputes that many attorneys simply don't have.

If your business has received an FLSA complaint, contact our Schaumburg, IL FLSA litigation lawyer today. Call 847-995-1205 to schedule your free consultation.