The U.S. Labor Department’s (DOL) Wage and Hour Division (WHD) recently announced that it intends to launch a new nationwide pilot program under which employers that have independently discovered overtime or minimum wage violations under the Fair Labor Standards Act (FLSA) will be permitted to self-report them to WHD and participate in a DOL-supervised settlement, in exchange for a release of claims.
According to DOL, the new program, called the Payroll Audit Independent Determination (PAID) program, will offer employers the opportunity to resolve minimum wage and overtime violations voluntarily to avoid potentially costly and time-consuming litigation. DOL has not yet announced a date as to when the PAID program will go into effect. Once launched, it will run for six months, at which time DOL will decide whether to extend it.
An overview of the PAID program is available on WHD’s website.
Members of the Center for Workplace Compliance (CWC) can read more here.