by The U.S. Department of Labor (DOL) has revived a tool for employers to resolve potential wage and hour and Family and Medical Leave Act (FMLA) compliance concerns. According to the agency, the program allows employers to correct compliance mistakes voluntarily and avoid agency action or litigation. Under the program, known as Payroll Audit Independent Determination (PAID), employers are encouraged to conduct audits within their organizations. If an employer discovers wage and hour or FMLA violations, the employer can self-report violations to the agency. The DOL, through its Wage and Hour Division (WHD), will work with the employer to correct mistakes and ensure that the employer quickly provides any back wages due or offers other remedies for the affected employees.
The steps of the PAID program include:
- Self-Audit – The employer conducts a self-audit to identify potential violations, determine which employees were affected, and when each employee was affected.
- Report to WHD— Employer contacts WHD to report its findings, back wage calculations, suggested remedies, and explain its methodology in reaching its audit conclusions. Part of the process involves the employer certifying that it has met all the PAID program’s requirements.
- WHD Review— WHD evaluates the employer’s report and guides next steps.
- Remedies— Employer pays back wages or provides other remedies to employees and then gives WHD proof of payment and other supporting documentation.
The DOL website details the program at https://www.dol.gov/agencies/whd/paid.
