DOL Announces the PAID Program

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The Wage & Hour Division of the Department of Labor announced a new pilot program this month called PAID:  the Payroll Audit Independent Determination Program.  According to the DOL, PAID will help ensure that employees receive 100% of any owed back wages, in compliance with the labor standards rules as laid out by the Fair Labor Standards Act, helping businesses and employees to determine what is owed in any back pay or overtime disputes without litigation or attorney’s fees.

This pilot program will roll out nationally over the next six months, culminating in a program audit to determine its effectiveness.

The PAID program is available to all FLSA covered employees, except those employees or businesses who are currently in litigation over wage disputes.  For those employers choosing to participate, the Wage & Hour Division will not impose any type of penalties or damages to finalize any subsequent settlements; they will simply oversee the resolution of potential violations by determining the sum of any due wages and supervising the subsequent payment of said wages.

Covered violations include failures to pay overtime at the time-and-a-half rate, misclassification of FLSA exempt employees looking for a change in status, and cases of alleged “off the clock” work.

For a list of frequently asked questions regarding the PAID program, click here.

For a better understanding of the Fair Labor Standards Act (FLSA) click here.

For the full press release from the DOL click here.

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