On April 3, 2018, the U.S. Department of Labor’s Wage and Hour Division (WHD) launched the Payroll Audit Independent Determination program (PAID) on a six-month trial basis. The intent of the program is to allow employers to pay back wages to workers for inadvertent overtime and minimum wage violations under the Fair Labor Standards Act (FLSA) while avoiding penalties and litigation expenses.
The WHD’s web page for the PAID program states that the program is designed to “ensure that more employees receive the back wages they are owed – faster.” Under the program, the Labor Department encourages employers “to conduct audits and, if they discover overtime or minimum wage violations, to … work in good faith with WHD to correct their mistakes and to quickly provide 100% of…
