A statement from the Green’s co-leaders said Tana was suspended on Thursday afternoon as it would have been a conflict of interest with her small business portfolio.
The claims first came to light on February 1 when Tana informed the party that a complaint had been made to the Employment Relations Authority (ERA) by a worker at her husband’s business, E-Bikes NZ.
"On February 9, the party was notified of a second complaint to the ERA," the statement read.
"These complaints included allegations against Ms Tana. Ms Tana has not been a director or shareholder of E Cycles NZ since 2019."
She was suspended after it became apparent she may have previously been aware of the allegations.
An independent lawyer is conducting the investigation.
"Green MPs are expected to maintain high standards of public and private behaviour. To understand fully what Ms Tana knew, and when, we are appointing an independent lawyer to conduct an investigation into the matter. Ms Tana will stand aside from all caucus and Parliamentary responsibilities until the matter is resolved," the statement read.
"We cannot comment on the specific allegations while the matter is waiting mediation and the independent investigation is ongoing."
Green Party leader Chlöe Swarbrick, speaking with Newstalk ZB’s Mike Hosking said they are "deeply serious allegations."
Swarbrick said it was not useful for politicians to involve her opinions in the situation while an investigation is ongoing.
She would not say whether Tana has denied the allegations or not.
"On February the 1st, Darleen did notify the party of an allegation," Swarbrick said.
"To avoid any conflict of interest, Darleen stepped down from her portfolios."
On March 14, it became clear that Darleen may have knew of the issues before she alerted the party, so that was when she was stood down, Swarbrick said.
"Yesterday it came to our attention that Darleen may have had prior knowledge of these allegations."
Swarbrick called the situation "incredibly serious".
"Of course there is a level of public scrutiny."
National Deputy Leader Nicola Willis told Newstalk ZB it’s a matter for the Green Party.
"It sounds a bit messy, and obviously all of us condemn any form of migrant exploitation."
Tana was elected in last year’s election for the first time and she’s a member of the environment select committee.
Her portfolios include Digitising Government, Media and Communications, Oceans and Fisheries, Overseas New Zealanders, Science Innovation and Technology, and small business and manufacturing.