Barrett Business Services Inc. (NASD: BBSI) has been informed the San Francisco office of the Division of Enforcement of the Securities and Exchange Commission has obtained a Formal Order of Investigation in connection with its review of the company’s accounting practices with regard to its workers’ compensation reserves, the Vancouver, Wash.-based company reported Monday in a US Securities and Exchange Commission filing.

The company said it is cooperating fully with the SEC staff in providing the requested information.

The Seattle Times reports the Vancouver, Wash.-based company was recently hit with a shareholder class-action lawsuit alleging Barrett, Elich and Chief Financial Officer Jim Miller violated federal securities laws. The suit arose after the company’s stock price plummeted on the heels of its announcement of increased workers’ compensation reserves.

Barrett reported net revenue rose 23.5% year over year in the first quarter with increases in both PEO and temporary staffing revenue.