The U.S. Department of Labor (DOL) Wage and Hour Division (WHD) is extending its Payroll Audit Independent Determination (PAID) program for six more months – until April 2019. The PAID program was established to expedite resolution of Fair Labor Standards Act (FLSA) overtime and minimum wage violations [DOL News Release, 10-9-18].
When the PAID program was launched nationwide in April, the DOL said that it would implement the program for approximately six months, after which it would evaluate the program and consider future options. Rather than conclude in early October, the program received a six-month extension and will conclude in April 2019.
How to Participate
To participate, employers must review information about the program and compliance assistance materials on the PAID website. After reviewing the materials, employers must audit their compensation practices for potential noncompliance. If the employer wants resolution of any of the issues it finds during its self-audit, the employer should contact the WHD.
Unless the WHD denies the employer’s request to participate in the program at the outset, the WHD will then inform the employer how to submit required information. The WHD will evaluate the information and contact the employer to discuss next steps.
After it assesses the back wages due, the WHD will issue a summary of unpaid wages. The WHD also will issue forms describing the settlement terms for each employee. Employees can choose whether or not to accept the back wage payments. Employers must pay all back wages by the end of the next full pay period and provide proof of payment to the WHD.
To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!
