Positive News for HR Professionals – New PAID Program

There is positive news in the Human Resources world. When it comes to enforcement of the Fair Labor Standards Act (FLSA), the Department of Labor (DOL) is taking a progressive new approach to their handling of payroll audits, one which will go over well with Human Resources professionals. The DOL just announced a new pilot program called the Payroll Audit Independent Determination (PAID) program. https://www.dol.gov/whd/paid/

The program’s primary objectives are to resolve 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 PAID, employers would conduct self-audits of FLSA compliance and, if they discover wage-and-hour violations, they may come forward to the DOL to correct mistakes and provide back wages quickly and efficiently.

An incentive for turning yourself in

The potential incentive for turning yourself in: An employer that voluntarily self-reports and works with the DOL to take corrective action under the PAID program will most likely not be subject to liquidated damages. The DOL’s Wage-and-Hour Division would oversee the program to determine the amount of back pay and ensure the company’s payments to workers.

Six-month pilot

This is a six-month pilot program, and the Wage-and-Hour Division (WHD) will evaluate its effectiveness, as well as potential modifications to the program, to determine its next steps. It is unclear if the DOL will share their findings with state agencies and the impact to your company if they do. It is always prudent to check with your employment attorney before taking these types of actions.

ClearPath can provide you with employment answers and assist you in determining if your company may be at risk, and provide solutions to ensure compliance. Contact ClearPath for a complimentary 1:1 review of your current worker status.