Takeaways

• DOL’s Wage and Hour Division has reinstated its Payroll Audit Independent Determination program, which allows employers to self-audit, voluntarily report, and remedy statutory violations through the agency.
• The program has been expanded to include certain potential FMLA leave violations.
• Employers considering using PAID to resolve potential violations should consult with counsel to discuss the benefits and risks.

The Department of Labor’s Wage and Hour Division (WHD) has relaunched its voluntary Payroll Audit Independent Determination (PAID) program, the agency announced July 24, 2025. The PAID program is an opportunity for employers to resolve certain statutory violations without litigation. By self-auditing their practices and voluntarily reporting violations to WHD, employers can settle violations quickly, without incurring liquidated damages or civil penalties and can obtain a binding release of certain claims.

Through PAID, employers can settle Fair Labor Standards Act (FLSA) minimum wage and overtime violations. The program has also been expanded to allow employers to resolve and remedy certain potential violations of Family and Medical Leave Act (FMLA) leave requirements. (WHD enforces both statutes.)

WHD first rolled out PAID in April 2018, but the Biden Administration discontinued the program in January 2021.

How PAID Works

To participate in the relaunched PAID process, an employer must start with a mandatory review of WHD compliance assistance...

Read Full Story: https://news.google.com/rss/articles/CBMiqAFBVV95cUxOTVFtV2wwOXBrOW5KdWJ5d2g2...