On April 3, the U.S. Department of Labor’s Wage and Hour Division (WHD) launched the Payroll Audit Independent Determination (PAID) program, a new nationwide pilot program to assist employers in expediting the resolution of inadvertent overtime and minimum wage violations under the Fair Labor Standards Act. The pilot program will be implemented for approximately six months nationwide. Following that, the WHD will evaluate the effectiveness of the program and consider different options for moving forward.

According to the DOL website, “under the PAID program, employers are encouraged to conduct audits and, if they discover overtime or minimum wage violations, to self-report those violations. Employers may then work in good faith with WHD to correct their mistakes and to quickly provide 100 percent of the back wages due to their affected employees.”

In order to participate in the PAID program, employers must certify to the WHD the veracity of several criteria, including that employees included in the proposed PAID self-audit are not subject to prevailing wage requirements under the H-1B, H-2B or H-2A Visa Programs, the Davis Bacon Act or Related Acts, the Service Contract Act or any Executive Order.

To learn more about the pilot program and who can participate, click here. 

On April 10, DOL offered a webinar on the new PAID program. View a recording of the PAID webinar here. 

For more information, visit the DOL’s PAID website.