On July 24, 2025, the U.S. Department of Labor (“DOL”) announced the relaunch of the Payroll Audit Independent Determination (“PAID”) program, which allows employers to correct mistakes efficiently by self-reporting potential violations of the FLSA or FMLA. Introduced in 2018, the PAID program was popular among employers during the first Trump administration, but it was eliminated under the Biden administration in 2021.
The PAID program allows employers to correct mistakes without inviting a threat of litigation expenses, liquidated damages, attorneys’ fees, and fines. Instead, if the DOL determines a violation was committed, the employer must only pay back wages or other remedies owed within 15 days of receiving the DOL report. Employers should note that the PAID program does not resolve or provide recommendations regarding potential claims under state and local laws.
The PAID program begins with an employer conducting a self-audit to identify potential violations, the employees affected, and any potential back wages or remedies that may be owed. Then the employer contacts the DOL’s Wage and Hour Division (“WHD”) to discuss the self-audit’s findings and provide a concise statement of the scope of the potential violations. If the employer is eligible to participate in the PAID program, the WHD will evaluate the submission and provide guidance on any needed back wages or other remedy payments. The employer then provides those remedies to the affected employees within 15 days, and provides a proof of payment and documentation of other remedies to the WHD.
Participation is limited, however, to those employers who meet the following criteria: (1) the employer has not been found liable for any FLSA or FMLA violations in the last three years, (2) the employer is not a party to any litigation asserting the same potential violations at issue in the self-audit, (3) the WHD is not currently investigating the practices at issue, and (4) the employer has not participated in PAID in the last three years.
Employers considering participation should work with legal counsel to discuss potential eligibility, conducting a self-audit, and communicating with the WHD.
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