After a year-long pilot, the Department of Labor’s
employer-self-audit initiative is apparently here to stay. Which
begs the question: should you participate? Let’s look at the
most common questions and provide some answers.
What Is The PAID Program?
The Payroll Audit Independent Determination (PAID) is a formal
program run by the U.S. Department of Labor (USDOL) providing an
avenue for employers to achieve compliance, pay back wages, and
move forward with a reasonable level of certainty that it has
resolved wage and hour issues without the time and effort necessary
to do so in the litigation context or even an agency initiated
audit. While it is a solution that is not without risks, employers,
attorneys, and the public at large have to consider it in
conjunction with an employer’s other options—or lack
thereof.
