The United States Department of Labor (DOL) recently expanded opportunities for employers to self-audit and correct violations of various wage/hour and leave laws it administers. These self-audit programs are intended to assist employers in complying with the law while advancing worker protections. Some of these programs – some of which are new and others expansions of existing or previous programs – allow employers to reduce exposure to formal DOL investigations, litigation, or penalties, whereas others are more informational in nature, with a focus on proactive employer compliance.
- Wage Self-Audits: The DOL’s Wage and Hour Division (WHD) has relaunched its Payroll Audit Independent Determination (PAID) program. This program previously ran from 2018 to early 2021, and it allows employers to resolve minimum wage and overtime violations under the Fair Labor Standards Act (FLSA). To participate, an eligible employer must review certain compliance materials and obtain a certification before conducting the audit. Next, the employer conducts a self-audit to identify potential violations along with back wages that are owed to employees, and the employer reports these findings to the WHD. The WHD evaluates the report and issues a summary of unpaid wages along with a release of liability, which the affected employee(s) may choose to accept or decline. If accepted, the employer issues the payment to resolve the matter. It is advisable to consult with counsel before engaging in a...
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