What's Happening?
The U.S. Department of Labor has relaunched the Payroll Audit Independent Determination (PAID) program, allowing employers to voluntarily self-report potential wage-and-hour violations. The program, which
now includes certain Family and Medical Leave Act (FMLA) violations, aims to expedite the resolution of wage disputes and facilitate the recovery of back wages without litigation. Employers can use PAID to address Fair Labor Standards Act (FLSA) violations and newly added FMLA issues, such as denial of leave or failure to reinstate employees. However, participation is limited to employers not currently under investigation or involved in related litigation.
Why It's Important?
The PAID program offers a streamlined process for employers to rectify wage and hour discrepancies, potentially saving time and resources by avoiding lengthy court battles. For employees, it provides a quicker path to recovering owed wages. The inclusion of FMLA violations expands the program's scope, offering more comprehensive coverage for workplace rights. However, employers must be cautious, as participation does not eliminate the risk of state-law claims, and employees retain the right to pursue private litigation if they choose not to accept the offered remedies.
What's Next?
Employers should assess their eligibility for the PAID program and consider conducting internal audits to identify potential violations. Legal and HR teams may need to update compliance strategies to align with the program's requirements. As the program progresses, the Department of Labor will likely monitor its impact and effectiveness, potentially leading to further adjustments or expansions.
