U.S. Dept. Of Labor Ends Program Allowing Self-Reporting Of Federal Minimum Wage, Hour Violations

The U.S. Department of Labor announced the immediate end of its Payroll Audit Independent Determination (PAID) program launched by the department’s Wage and Hour Division in 2018.

The program was terminated effective January 29, 2021. The PAID program allowed employers to self-report federal minimum wage and overtime violations under the Fair Labor Standards Act.

Once reported, employees were barred from suing for back wages and damages owed to them due to the violations. Instead, employers were able to work directly with the DOL Wage and Hour Division to correct violations and deliver any back wages to employees.

The DOL said the PAID program is no longer needed because the department provides significant outreach and educational resources for employers seeking assistance to understand their responsibilities to comply with wage and hour laws.

In addition, the department said its resources are sufficient for helping employers comply without relieving them of their legal obligations and ensure that employees understand their rights.

The end of the PAID program means that employers can only obtain a release of FLSA claims through a court-approved settlement or as a result of an investigation initiated by the DOL.

Even though the PAID program is over, employers should continue to self-audit their pay records and correct any potential wage and hour violations that are identified to reduce liability.

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