On March 6, the U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) announced a new nationwide pilot program, the Payroll Audit Independent Determination (PAID) program, which intends to facilitate the resolution of potential overtime and minimum wage violations under the Fair Labor Standards Act (FLSA). According to WHD, the program's primary objectives are to resolve such claims expeditiously and without litigation, to improve employers' compliance with overtime and minimum wage obligations, and to ensure that more employees receive the back wages they are owed—faster.
Under the pilot program, employers will be encouraged to audit their practices, flag any minimum wage or overtime violations they find, and report them to WHD. Employers will then work with WHD to correct their errors and ensure workers are paid as quickly as possible. However, employers are not allowed to participate if they are repeat offenders, in litigation, or currently under investigation for wage and hour violations.
WHD will implement this pilot program nationwide for approximately six months. At the end of the pilot period, WHD will evaluate the effectiveness of the pilot program, as well as potential modifications to the program, to determine its next steps. More information and Q&A’s on the program can be found here.
For more information, contact Claiborne Guy at claiborne.guy@agc.org or 703-837-5382.