DOL Announces Wage & Hour Self Audit Program

MARCH 8, 2018

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The Department of Labor’s Wage & Hour Division (WHD) has announced a nationwide audit initiative, the “Payroll Audit Independent Determination” (PAID) program, designed to resolve potential wage and hour and overtime violations quickly and without the expense and difficulties associated with litigation. The WHD notes in the announcement that the program will initially last for six months and then will be evaluated to determine its effectiveness and whether it should be retained “as is” or with modifications.

All employers covered by the Fair Labor Standards Act (FLSA) are eligible to participate but may not do so if the claim at issue is already being investigated or the subject of litigation. Employers who detect an issue with back wages or unpaid overtime can contact the WHD to fashion a resolution to the issue.

Once agreed upon by the employer and WHD, the agency sends forms to the employee that contain the proposed settlement terms and a general release from further liability. A “Questions and Answers” page on WHD’s website further illuminate how the program is designed to operate, with WHD noting that additional PAID program information will be provided soon.