States' Attorneys General Throw Shade On USDOL's "PAID" Program

Last month, we discussed some serious concerns about the efficacy of the U.S. Department of Labor's "PAID" program, under which employers can self-report wage and hour violations to the federal agency and negotiate a seeming resolution of potential claims. Chief among our concerns was that the resolution would not extend to state law claims, leaving an employer that participates in the "PAID" program materially exposed to state law claims and lawsuits.

That concern became a reality this week, as New York Attorney General Eric Schneiderman–writing to U.S. Labor Secretary Alexander Acosta on behalf of a coalition of states' attorneys general (including from California and New Jersey)–noted that "it would be an improper federal overreach for the [DOL] to attempt to permit employers, under the auspices of the PAID Program, to require employees to waive state law protections in exchange for the employer's payment of overdue wages." The letter concludes with a stark note