Voluntary Wages Audit Extended – How to Participate

The Department of Labor has extended the Payroll Audit Independent Determination (PAID) program till April, 2019. Employers are encouraged to participate.

Updated on December 5th, 2018

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The Department of Labor’s Wage and Hour Division (WHD) has extended the Payroll Audit Independent Determination (PAID) program till April, 2019. Employers are encouraged to audit themselves and report any overtime and minimum wage violations.

The nationwide program was launched in April last year to resolve any overtime and minimum wage disputes between employers and employees, ensure compliance to the Fair Labor Standards Act (FLSA), and to provide back-wages due to employees.

Experts suggest that complicated wage laws have allowed violations to have occurred in virtually every industry. By participating in PAID, employers stand to benefit from the guidance of the Department of Labor in preventing further violations. Employers who don't participate run the risk of costly litigation, and repeated violations.

Employers seeking to participate in PAID, and wanting to fix any non-compliant payroll issues can visit the Department of Labor’s PAID website for assistance.

How to Participate in PAID:

  1. Start by reading the relevant FLSA compliance materials.
  2. Self-audit your compensation practices for non-compliance.
  3. Identify claims in need of resolution.
  4. Identify the potential violations.
  5. Identify which employees were affected.
  6. Identify timeframes in which employees were affected.
  7. Calculate the amount of back wages owed to the employees.
  8. Contact the Wage and Hour Division.

Information the WHD Will Require:

  1. The back wage calculations and supporting documentation.
  2. An explanation of what lead to the violation.
  3. Proof that the employer reviewed all relevant information and assistance materials.
  4. Proof that the employer is covered by the FLSA
  5. Proof the employer has not been found by a court of law to have violated the FLSA requirements within the last five years.
  6. Proof employer is not already under investigation or in litigation.

Further Reading:

Read the original Dept. of Labor press release about PAID here. Read a related opinion piece here.