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New federal program provides faster resolution to FLSA breaches

If you are an employer who has inadvertently violated the overtime or minimum wage standards set forth in the Fair Labor Standards Act (FLSA), the Department of Labor (DOL) has just released a new program that could help you out. The program—currently in the pilot stage—is called the Payroll Audit Independent Determination (PAID) program.

This voluntary program enables employers to come forward and easily resolve non-compliance issues—without being subject to the penalties they would otherwise face. The PAID program is available to any employer covered by the FLSA, provided that the employer is not already undergoing litigation or investigation by the DOL.

Benefits

  • The program gives employers the opportunity to self-assess their payroll practices.
  • Employers who report non-compliant practices via this program can avoid litigation or other penalties.
  • Employees promptly receive 100% the money they are owed without having to pay any fees or litigation expenses.

How to participate

Employers who want to participate in the PAID pilot program must first submit a review certification on the DOL website. They must then conduct a self-audit of their payroll practices, including overtime and minimum wage. If the employer discovers any violations—or potential violations—they must report these to the DOL, along with the dates of violation, employees affected and calculated back wages for each violation. Finally, the employer must demonstrate that they have taken the necessary steps to prevent such violations from happening in the future.

Just a simple clerical error can unintentionally make an employer non-compliant with labor law. The PAID program gives employers a risk-free way to ensure their practices are above board.

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