Employers self-reporting overtime and minimum wage no longer protected from wage and hour law

The U.S. Department of Labor has announced that it has ended the Payroll Audit Independent Determination (PAID) program, effective immediately. PAID which was launched by the Department’s Wage and Hour Division in 2018, allowed employers to self-report minimum wage and overtime violations, without facing litigation, penalties or additional damages. The program also prohibited affected workers from taking any private action on the identified violations. For employers who seek assistance understanding their responsibilities under wage and hour laws, the Wage and Hour Division provides significant outreach and educational resources, which help them achieve compliance, but it doesn’t relieve them of their legal obligations. These resources also ensure that workers understand their rights.

The Wage and Hour Division investigates violations of the FLSA to ensure that employers comply with their obligations. When enforcement actions are necessary, the FLSA provides for the payment of back wages and liquidated damages to workers, and the assessment of civil money penalties when the agency determines the violations to be repeat or willful. The FLSA also gives workers the right to pursue private legal action against employers for back wages and damages. Employers and workers are encouraged to call a Wage and Hour Division office in their area for help compliance. Calls are confidential. For more information about the FLSA and other federal wage laws, call the Wage and Hour Division’s toll-free helpline at 866-487-9243.