PAID program ended: Self-reporting FLSA violations could mean trouble
In January 2021, the U.S. Department of Labor (DOL) announced it ended the Payroll Audit Independent Determination (PAID) program, effective immediately.
Launched by the DOL’s Wage and Hour Division (WHD) in 2018, PAID allowed employers to self-report minimum wage and overtime violations under the Fair Labor Standards Act (FLSA) without facing litigation, penalties, or additional damages.
The program also prohibited affected workers from taking any private action on the identified violations. Again, this program has since come to an end.
In July 2020, however, the WHD issued a Field Assistance Bulletin (i.e., a document to provide guidance to WHD field staff) also related to an employer’s risks in these areas.
This guidance states that the agency won’t assess liquidated damages in pre-litigation settlements (i.e., fines on top of back pay, or “double damages”) during WHD investigations if any one of the following circumstances exist:
- There is not clear evidence of bad faith and willfulness;
- The employer’s explanation for the violation(s) show that the violation(s) were the result of a bona fide dispute of unsettled law under the FLSA;
- The employer has no previous history of violations;
- The matter involves individual coverage only;
- The matter involves complex exemptions; or
- The matter involves state and local government agencies or other non-profits.
While an employer no longer has an obvious path to pardon for minimum wage and overtime violations, errors made in good faith may still be survivable. Of course, employers should regularly audit their payroll practices and follow all state or federal wage and hour laws.



















































