Accessibility Tools

Skip to main content

DOL Launches Pilot Program Allowing Employers to Resolve Payroll Errors Without Fees or Penalties

Written on .

On March 6, 2018, the Wage and Hour Division of the U.S. Department of Labor (WHD) announced a pilot program designed to expedite resolution of payroll errors.  Dubbed with the convenient acronym PAID, the Payroll Audit Independent Determination program will allow employers to correct inadvertent overtime and minimum wage violations without having to pay fees, fines, or liquidated damages. 

Under the PAID program, employees will receive 100 percent of the back wages owed.  Employers – and employees -- will be spared any litigation expenses, attorneys’ fees, or other costs that may be applicable to private actions. WHD will assess the amount of wages due and supervise payment to employees. No penalties or liquidated damages will be imposed on employers who participate in the PAID program, self-report errors to WHD, and agree to future compliance.  (The program is not open to employers currently being investigated or engaged in litigation.) 

WHD is implementing the pilot program nationwide for approximately six months, after which it will evaluate the results and decide whether to make it permanent.  Employers are encouraged to audit their compensation practices to identify and correct potential non-compliant practices. 

COMMENT:  PAID is an example of how DOL can be a compliance partner, not just an adversary to employers.  “Good faith” traditionally allowed employers to avoid liquidated damages where inadvertent errors were made.  The prospect of attorneys’ fees often makes FLSA cases an expensive “gotcha” for employers and an impediment to settlement:  PAID should help short-circuit the litigation lottery, getting employees made whole sooner without letting their attorneys get fat in the process.

More information concerning the pilot program is available at www.dol.gov/whd/paid

Questions?  Need more information?  Contact Larry Stine (jls@wimlaw.com) or call 404-365-0900.

Related Content

Get Email Updates

Receive newsletters and alerts directly in your email inbox. Sign up below.

Recent Content

From the historic bronze doors at Los Angeles City Hall.

NLRB to Seek Rescission of past Discipline Imposed under Overbroad Employer Work Rules

In a memo issued during April, NLRB General Counsel Jennifer Abruzzo announced that when the NLRB seeks to rescind overbroad and thus ill...
dashcam

Do Drive Cam Cameras inside Trucks Violate Employee Rights?

As a safety measure, many employers with driver employees have installed cameras inside the cab to alert drivers and monitor their safe d...
amazon app, mobile phone, table, indoors

Amazon Considers Risk When Investigating Employee Misconduct

In a legal conference in March, Amazon Corporate Counsel Lee Langston stated that aggressive enforcement actions of the NLRB have impacte...
Person signing a contract

Latest NLRB Attack Goes beyond Non-Compete Agreements to Reach Outside Employment

An interesting article concludes that the NLRB is invalidating employer rules "one clause at a time."  On January 31, 2024, the NLRB's Di...
black lives matter painted on a wall

NLRB Board Addresses BLM Insignia at Work

In a February 21, 2024 ruling, the NLRB reversed an administrative law judge's conclusion that writing "Black Lives Matter" (BLM) on apro...
indoors, workplace

Walk-Around Rule Allowing Union Reps to Accompany Safety Inspectors to Go into Effect

The U.S. Occupational Safety and Health Administration (OSHA) released its "Walk-Around Rule" in April, to take effect on May 31, 2024.  ...