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U.S. Department of Labor Ends PAID Program

On January 29, the U.S. Department of Labor (DOL) announced that it has ended the Payroll Audit Independent Determination (PAID) program, effective immediately. PAID, launched by the Department’s Wage and Hour Division (WHD) in 2018, allowed employers to self-report minimum wage and overtime violations under the Fair Labor Standards Act (FLSA) without facing litigation, penalties or additional damages. The program also prohibited affected workers from taking any private action on the identified violations.

The WHD investigates violations of the FLSA to ensure that employers comply with their obligations. When enforcement actions are necessary, the FLSA provides for the payment of back wages and liquidated damages to workers, and the assessment of civil money penalties when the agency determines the violations to be repeat or willful. The FLSA also gives workers the right to pursue private legal action against employers for back wages and damages.

Next Steps for Employers

Employers will need to ensure that they are aware of their obligations under the FLSA as failure to comply can lead to penalties and liquidated damages. Employers are also encouraged to call the WHD office in their area for help with FLSA compliance and to avail themselves of the DOL’s outreach and educational resources. Calls made to the DOL are confidential. For more information about the FLSA and other federal wage laws, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243) or visit http://www.dol.gov/agencies/whd/.

HR Works, Inc., headquartered at 200 WillowBrook Office Park in Fairport (Rochester), New York, with an office in East Syracuse, is a human resource management outsourcing and consulting firm serving clients throughout the United States. HR Works provides scalable strategic human resource management and consulting services, including: affirmative action programs; benefits administration outsourcing; HRIS self-service technology; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; talent management and recruiting services; and training of managers and HR professionals.