U.S. Department of Labor Blog
Late this July, the Department of Labor relaunched the Payroll Audit Independent Determination (PAID) program. In a recent blog, Deputy Secretary Keith Sonderling explained how self-audits, “enable you to identify and fix potential violations, reduce the likelihood of litigation, and demonstrate a good-faith commitment to following the law. They also help ensure that workers get the protections and benefits they are entitled to — like timely wages, fair and safe working conditions, and benefits security.”
Now that PAID is underway, we want to spotlight how employers can use the PAID program to engage with specific labor laws and regulations. The Fair Labor Standards Act (FLSA) is the signature law enforced by the Department of Labor’s Wage and Hour Division. Violations can lead to the failure to pay the minimum wage or overtime rates. Through a voluntary self-audit under the PAID program, employers can clear themselves from potential violations and distinguish themselves in their communities and among their competitors. Similarly, employers can self-audit their compliance with the Family and Medical Leave Act (FMLA), which ensures that employees can take medical leave in the event of a significant family or medical event like the birth of child or a prolonged illness.
If you think your business may have violated the FLSA or the FMLA, here are three steps to proactively resolve the errors:
- Make sure you’re eligible
In order to participate in PAID, you must be covered under the FLSA or the FMLA. You can’t have any previous labor law violations from the past three years or not be a party to any litigation involving compensation practices. Please visit the PAID website to review other requirements and confirm that you’re eligible.
- Review your pay and leave history
Once you establish that you’re eligible for PAID, you must review and complete our compliance checklist. The material is informative and brief, designed to give employers a detailed overview without taking too much time from their busy workday. After filling out the required material, you’ll receive a certificate, and the self-audit can begin.
- Contact us
During the self-audit, review your pay and leave history to identify FMLA and FLSA violations that may have occurred within the past two years, and the workers involved. Contact your local Wage and Hour Division office, and staff from the division will walk you through all the information and data you need. Once the division staff review the materials and determine whether you can conduct the self-audit, they will explain the specific details so you can return any unpaid back wages to employees without any further delay.
PAID is a great opportunity for employers to avoid costly penalties for proactively correcting non-compliance with complex labor laws. By signing up for the program and getting assistance from Wage and Hour Division staff who are eager to help, you will provide an invaluable service by protecting your employees, along with your business. Sign up today!
James R. Macy is the acting administrator of the U.S. Department of Labor’s Wage and Hour Division.