U.S. DOL Launches Program to Speed Up Resolution of Wage Violations

03.08.2018
HR & Safety

The Wage and Hour Division of the U.S. Department of Labor is announcing a new pilot program, the Payroll Audit Independent Determination program, designed to expedite resolution of inadvertent overtime and minimum wage violations under the Fair Labor Standards Act.
According to a March 6 statement released by the department, the PAID program will ensure that more employees receive back wages they are owed faster, without having to pay any litigation expenses, attorneys’ fees, or other costs that may be applicable to private actions.
Under the program, the DOL’s Wage and Hour Division will oversee resolution of potential wage violations by assessing the amount of wages due and supervising their payment to employees.

Relief—and Rules—for Employers

The division will not impose penalties or liquidated damages to finalize a settlement for employers who choose to participate in the PAID program and proactively work with officials to fix and resolve their potential compensation errors.
Employers may not participate in the PAID program if they are in litigation or currently under investigation by the division for the practices at issue.

Employers cannot use the pilot program repeatedly to resolve the same potential violations.

Employers likewise cannot use the pilot program repeatedly to resolve the same potential violations, as this program is designed to identify and correct potentially noncompliant practices.
Settlements will be limited in scope to only the potential violations at issue.
The program further requires employers to review the division’s compliance assistance materials, carefully audit their pay practices, and agree to correct the pay practices at issue going forward.
The division will implement the pilot program nationwide for approximately six months, after which it will evaluate the program and consider future options.
The division encourages employers to proactively audit their compensation practices to identify those that may be noncompliant.

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