On July 24, 2025, the U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) announced it would once again oversee the Payroll Audit Independent Determination (PAID) program, allowing employers to self-report violations of the Fair Labor Standards Act (FLSA) and Family and Medical Leave Act (FMLA). Without such supervision, an employee cannot be made to waive his or her rights to pursue a private lawsuit against an employer for lost wages.

In addition, the DOL launched several other new self-audit programs and expanded others relating to the Employee Retirement Income Security Act (ERISA), the Mine Safety and Health Act, the Occupational Safety and Health (OSH) Act, the Labor-Management Reporting and Disclosure Act, and the Uniformed Services Employment and Reemployment Rights Act (USERRA).

• WHD’s PAID program allows employers to self-audit their pay and leave practices under the FLSA and FMLA.
• An employer that discovers a violation can self-report the violation to WHD.
• WHD will then review the audit and has the discretion to determine whether it desires to work with the employer to correct its mistakes.
• Employees will receive 100 percent of their back wages (or other remedies) but no liquidated damages (generally an equal amount of the back wages owed).
• Because the PAID program provides a supervised settlement, the employer receives a release of liability.

The PAID program was first introduced during President Donald Trump’s first term and abandoned during the...

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