Sofar Sounds is Being Investigated by The New York State Department of Labor

(Photo by Dia Dipasupil/Getty Images for Julie Mintz)

The pop-up concert company's labor practices are under investigation.

The New York Department of Labor has opened an investigation into Sofar Sounds.

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Though the cause and details of the investigation have been withheld, a profile from Talkhouse reveals that the pop-up concert company -- operating in the US, Canada, Spain, and the UK -- was previously criticized for its relatively low artist payout -- rising from $50, on average, to about $100 after news broke -- and its utilization of an almost entirely volunteer workforce, dubbing unpaid workers as "ambassadors" of the brand.

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According to Pitchfork, Sofar has operated as a for-profit company since 2009 with funding from several venture capital groups, including Richard Branson's Virgin Group, which recently infused the company with another $25 million.

A rep for the Dept. of Labor has confirmed the investigation. At the time of the report, Sofar had yet to offer comment.

The story is still developing. Hold tight for updates in the week's and months ahead.