Could you benefit from the PAID Program?

Earlier this year, the US Department of Labor announced the launch of the Payroll Audit Independent Determination (PAID) pilot program. This program seeks to increase FLSA compliance, and to accelerate payment of overdue wages to employees.

FLSA violations can incur stiff penalties. Employers caught underpaying or withholding wages can be forced to pay all the owed or underpaid wages, plus additional compensatory wages to the employees. And this says nothing of the legal costs or reputational risk of a wage claim going into litigation.

To participate in PAID, audit your payroll. If you discover any wage violations for which you have not yet received a complaint, you are encouraged to self-report them to the Department of Labor through the PAID program. Once the DOL have reviewed your unpaid wages report and verified that you have not received any earlier complaints regarding these wages, you may be able to repay them without fines or litigation.

Understand the PAID program before you participate. There are several limitations of the program, which you should take into consideration before participating:

Do you think you can benefit from the PAID Program? Or do you want peace of mind knowing you are adhering to payroll best practices? Call us on 818-845-5584 or email us at to schedule a consultation.

• You cannot use the Program to report violations for which you have already received complaints.
• You cannot use the Program multiple times for the same type of violation. Once you report a violation, you must commit to remedying its cause.
• Employees are not required to accept back wages through the program – they may instead choose to exercise their rights and pursue the compensatory wages owed them through litigation.
• Claims are limited to certain violations, and within a specific time period.