A recent state audit of the Connecticut Department of Labor (CTDOL) covering fiscal years 2023 and 2024, revealed extensive delays in wage complaint investigations. The audit noted internal control deficiencies; instance of noncompliance with laws or regulations; and a need for improvement to procedures. The question for employers is how will the CTDOL react?
According to auditors, as of September 2025, roughly half of the Department’s wage complaints were awaiting investigation. The audit also found CTDOL lacked the required documentation in cases with civil penalty payments. This may lead to improper or unauthorized penalties and is likely caused by inadequate management oversight, according to auditors.
Other areas of concern include record keeping. CTDOL did not perform a complete physical inventory in fiscal years 2023 and 2024, and did not physically inventory 3,614 assets, totaling $23,683,698, in at least ten years.
CTDOL Spokeswoman, Juliet Manalan, said “while we disagree with some of the auditors’ findings, overall, CTDOL welcomes this audit as another tool for improving agency and service operations.” Manalan went on to defend the Department stating “The division investigates all cases and assigns them to an investigator as staff become available. Last year, investigators recovered $3.9M in back wages and civil penalties and closed 2,454 cases.”
Despite Manalan’s reassurances, the backlog of cases appears to be growing. The audit found “as of July 2, 2024, the Wage and Workplace Standards Division received or initiated 980 complaint cases, that were not assigned for investigation. This represents a 16 percent increase over the 843 cases as of May 11, 2023, as reported in our prior audit report.”
What Comes Next?
Needless to say, Connecticut employers should expect delays when dealing with wage and hour investigations. The bigger issue is how the Commissioner of Labor, the Governor, and the rest of the Department respond to such stinging criticism. Hopefully, the public nature of the audit will prompt more expeditious handling of investigations. Hopefully, the desire for quicker investigations will not hurt their quality or curtail the Employers opportunity to present a full defense.
Brody and Associates regularly advises management on wage and hour compliance, including employee classification, overtime requirements, pay practices, and evolving federal, state, and local wage and hour laws. If we can be of assistance in this area, please contact us at info@brodyandassociates.com or (203) 454-0560.
