The U.S. Department of Labor, (DOL) Wage and Hour Division, announced a new pilot program to allow employers to report and resolve potential overtime and minimum wage violations under the Fair Labor Standards Act (FLSA). The program, called the Payroll Audit Independent Determination (PAID) program will be implemented for 6 months. At the end of the pilot, the Department of Labor will evaluate the program and determine if it will continue.
The objective of the program is to resolve overtime and minimum wage violations quickly and without litigation, and to improve employers’ compliance with the FLSA rules. An intended result is for more employees to receive back wages they are owed.
All employers subject to the FLSA (which are virtually all employers) are eligible to participate in the program. It may not be used for wage and hour or overtime violations already being investigated by the DOL. More information about the program will be released in the coming months. To sign up for alerts about the program, click here.
