Situation Report | February 1, 2021
On January 29, the U.S. Department of Labor announced that it has ended the Payroll Audit Independent Determination (PAID) program, effective immediately.
PAID, launched by the Department’s Wage and Hour Division (WHD) in 2018, 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.
In its announcement, DOL noted that the program had “enabled employers to avoid accountability.” DOL added that its WHD “provides significant outreach and educational resources for employers who seek assistance understanding their responsibilities under wage and hour laws, which help them achieve compliance without relieving them of their legal obligations” and “these resources also ensure that workers understand their rights.”