Federal Government Ends Program That Allowed Employers to Self-Report Federal Minimum Wage and Overtime Violations

Wage and Hour Division
PAID program enabled employers to avoid accountability

WASHINGTON, D.C. — The U.S. Department of Labor recently announced that the end of its Payroll Audit Independent Determination program launched by the department’s Wage and Hour Division in 2018.

The program allowed employers to self-report federal minimum wage and overtime violations under the Fair Labor Standards Act to avoid litigation, penalties or damages, and prohibited affected workers from taking any private action on the identified violations.

“Workers are entitled to every penny they have earned,” said Wage and Hour Division Principal Deputy Administrator Jessica Looman. “The Payroll Audit Independent Determination program deprived workers of their rights and put employers that play by the rules at a disadvantage. The U.S. Department of Labor will rigorously enforce the law, and we will use all the enforcement tools we have available.”

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The division provides significant outreach and educational resources for employers seeking assistance to understand their responsibilities to comply with wage and hour laws. These resources are sufficient for helping employers comply without relieving them of their legal obligations, and ensure that workers understand their rights.

The Wage and Hour Division investigates FLSA violations to verify that employers comply with their obligations. When enforcement actions are necessary, the FLSA provides for the payment of back wages and liquidated damages to workers and the assessment of civil money penalties when the agency determines the violations to be repeat or willful. The FLSA also gives workers the right to pursue private legal action against employers for back wages and damages.

The U.S. Department of Labor states that employers and workers are encouraged to call a Wage and Hour Division office in their area for FLSA compliance assistance. Calls are confidential. Learn more about the FLSA and other federal wage laws by calling the division’s toll-free helpline at 866-4US-WAGE (487-9243).

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