On July 24, the U.S. Department of Labor (DOL) announced several self-audit and voluntary compliance programs across six of its agencies aimed at what the agency describes as helping employers, unions, and benefit plan administrators assess and correct potential violations of federal labor laws before triggering a formal investigation.
According to the DOL, these programs are intended to foster a "culture of compliance and trust" by giving the regulated community access to tools and guidance that can proactively address labor law issues. The department emphasized that these programs reduce the likelihood of enforcement actions while improving protections for workers.
Key Programs for Employers
The DOL’s initiative includes the following programs of particular interest to employers:
Employee Benefits Security Administration: The EBSA continues to offer the Voluntary Fiduciary Correction Program and Delinquent Filer Voluntary Compliance Program to help employers and plan officials correct ERISA-related violations and reporting issues with reduced penalties.
Wage and Hour Division: The division is relaunching the Payroll Audit Independent Determination program, which allows employers to voluntarily self-identify and resolve violations of the Fair Labor Standards Act (FLSA) and the Family and Medical Leave Act (FMLA), including issues involving minimum wage, overtime, and leave. Participating employers may resolve liabilities without litigation or additional penalties.
Occupational Safety and Health Administration: OSHA is expanding its Voluntary Protection Programs to support employer-led efforts to improve workplace safety. OSHA is also ramping up its On-Site Consultation Program, which offers free, confidential safety and health evaluations to small and medium-sized businesses, helping employers identify risks before they become violations.
Veterans' Employment and Training Service: A new SALUTE program assists employers in reviewing policies for compliance with the Uniformed Services Employment and Reemployment Rights Act (USERRA), ensuring service members’ employment rights are protected. SALUTE stands for Support and Assistance for Leaders in USERRA Training and Employment.
Next Steps for Employers
Employers should evaluate these programs as a way to identify and remedy potential issues before facing formal enforcement actions. The voluntary compliance programs do involve some legal risk. If the employer fails to voluntarily correct deficiencies noted in the reviews, this could lead to enforcement action. Companies also have the option of conducting their own internal audits without government assistance, and potentially under attorney-client privilege. However, such private audits can be costly, and these government initiatives offer a practical path to compliance that can reduce risk and administrative costs.
To review available self-audit resources and see whether your organization may benefit from participation, visit: dol.gov/SelfAudit.
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