On July 27, 2025, the U.S. Department of Labor’s Wage and Hour Division (“WHD”) announced it is restarting the Payroll Audit Independent Determination Program (“PAID”). PAID enables employers to self-identify and resolve potential minimum wage, overtime, and leave violations under the Fair Labor Standards Act and the Family Medical Leave Act. This program allows employers to correct mistakes efficiently and ensure employees receive back wages or other remedies promptly, while avoiding litigation.
The program involves an employer self-audit during which they review compliance assistance materials and specifically identify the potential violations, employees affected, and timeframes each employee was affected, within the last two (2) years. Employers would then calculate the amount of back wages owed to each employee, if applicable. Employers then contact WHD to discuss their findings, back wage calculations, remedies due, supporting evidence, and methodology. Employers must also submit a concise statement of the scope of the potential violations for inclusion in a release of liability, and certification that the employer reviewed and meets all the program’s requirements.
WHD will evaluate the submission and provide guidance on next steps, including any additional information required to review the back wages and other remedies due for the identified compensation and leave practices. Employers would then pay back wages and/or remedies within 15 days of receiving the summary of unpaid wages and provide proof of payment and documentation of other remedies to WHD.
To participate, employers must be (1) covered by the FLSA and/or the FMLA, (2) interested in proactively resolving potential minimum wage, overtime, tip retention and/or FMLA claims, and (3) willing to commit to future compliance under the FLSA and/or the FMLA.
WHD provides guidance on the program including how an employer can participate, how to conduct a self-audit and possible remedies here: https://www.dol.gov/agencies/whd/paid. Should you have any questions regarding this program or need any other assistance, please contact Ali Law Group.
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