When the Department of Labor Investigates Your Business: What Every Childcare Owner Needs to Know

When the Department of Labor comes knocking, it can shake even the most confident business owner.

Not your systems.
Not your strategy.

Your integrity.

Getting notified that you are under investigation is one of those moments.

Let me be honest… it’s scary.

Your mind immediately starts racing.

What did we do wrong?
What are they going to find?
What does this mean for my business?

And if you take pride in doing things right, it feels even heavier.

The First Thing I Did

The moment I found out we were being investigated, I called my attorney.

She’s amazing, someone I trust deeply, but even she said:

“I’ve never really seen anyone go up against the Department of Labor and come out well.”

That didn’t exactly calm my nerves.

She referred me to a larger firm in Columbus, and after spending $1,500, I was told something simple…

Something I already knew.

But I needed to hear it.

The 3 Rules That Carried Me Through

If you take nothing else from this, take this:

1. Share Only What They Ask For

Do not overshare.
Do not undershare.

Answer the question. Provide what is requested. Nothing more.

When I heard I was being investigated I immediately launched a 3 star full investigation on myself. I was truly blindsided so I just needed to know what I was doing wrong. I ran everything I do through chatGPT and let me just tell you they had me convinced I’d potentially be fined dozens of thousands of dollars, shutting my doors, and maybe being in jail! All for potential unknown errors I may have made? I just didn’t know “what” I did wrong.

So clearly in reviewing my practices, I found some flaws in our practices. I was prepared to write a 12 page “Clarification letter” with screenshots and proof from Exhibits showing my new found awareness in DOL polices and how I immediately would rectify it and never do it again.

Literally… overthink much?

The lawyer shut me down.

Just do what they ask. And do it honestly.

2. Be Honest — No Matter What

This is an investigation. It isn’t to be taken lightly c but ultimately it’s about compliance, they are not vampire blood hungry government officials excited to ruin your life. They just are ensuring compliance.

Even if you discover something was done incorrectly… be honest.

Integrity matters more than perfection.

Most business owners aren’t trying to do things wrong. Sometimes you simply don’t know. And that’s what they are doing. To make it known and to ensure you pay your people according to the law. If that matters to you, you will do just fine.

And when that mistakes come to light, you have a choice:

Hide it… or grow from it.

3. Be Respectful

They are not trying to ruin you. They are doing their job.

In fact, the investigator (who is a lawyer) commended me for my cooperation, my honesty, my respect, my ease to open my books even in errors to clarify and bring her in to my systems to show her. One error would have shown me be in major in compliance in OT pay only to realize the reporting I gave her was wrong. She worked with me, even in my lack of understanding and together we picked through hours and hours of records.

When you approach the process with professionalism, cooperation, and respect, it changes everything.

The Truth Most Business Owners Don’t Say

If you receive government funding, subsidies, or operate a regulated business…

You should be held accountable.

That’s not a bad thing.

That protects your employees.
That protects your industry.
That raises the standard.

And if you lead with integrity, accountability shouldn’t scare you.

It should refine you.

What Happened in Our Case

Our center was randomly selected for investigation.

They:

• Interviewed staff

• Reviewed payroll line by line

• Examined bonuses and policies

• Requested hours of documentation

We gave them everything. Fully transparent.

And at the end of it…

The case was closed. And she said we had:

No violations.
No penalties.
No concerns.

The Only Feedback We Received

We were given two reminders:

• Staff must clock in and out for meetings, and paper time records must be kept for 7 years

• Performance-based bonuses must be structured correctly and included in overtime calculations

That’s it.

In fact, we were told we were professional, thorough, and rare to work with in such a positive way.

What I Learned as a Leader

I’ve always believed I have an audience of One.

If I can lay my head down at night knowing we are doing things right — with integrity, with our team, and before the Lord — then I trust the outcome.

This experience didn’t shake that belief.

It strengthened it.

Because when everything was examined…

What showed up wasn’t perfection.

It was integrity.

If This Ever Happens to You

Here’s my advice:

• Don’t panic

• Get wise counsel

• Share only what is asked

• Be completely honest

• Stay respectful and professional

And most importantly…

If something is uncovered that isn’t perfect…

Take it as an opportunity to grow.

Tighten your systems.
Strengthen your leadership.
Build something even better.

Because the goal isn’t just to pass an investigation.

The goal is to build a business so solid that when it’s tested…

It stands.

Call to Action:

Buy my book BOSS UP. Don’t BURN OUT and take the full journey from burnout to breakthrough.
Buy the book here

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