The U.S. Department of Labor (DOL) has announced the immediate
termination of its Payroll Audit Independent Determination (PAID)
program. The PAID program began in March 2018 as a pilot program to
allow employers an alternative method to rectify overtime and
minimum wage violations of the Fair Labor Standards Act (FLSA)
without the worry of an extended statute of limitations, penalties,
and threat of private litigation or attorneys' fees. The Wage
Hour Division has repeatedly touted the program's success.
Although after a successful trial period the program was extended
indefinitely in October 2018, the DOL abruptly ended the
self-reporting program on January 29, 2021.
In its press release announcing the end of the
program, the DOL indicated that the resources and outreach provided
by the Wage and Hour Division to employers are sufficient to help
employers comply with the FLSA "without relieving them of
their legal obligations."
