On July 24, 2025, the U.S. Department of Labor (DOL) issued a news release describing several programs available to employers, unions, and benefit plan administrators designed to strengthen protections for employees, while reducing the likelihood of a formal investigation, litigation, and penalties related to non-compliance, collectively referred to as “self-audit programs.”
The DOL’s official news release, written by Keith Sonderling, Deputy Secretary of Labor states, “Self-audits are one of the most effective ways to build a culture of compliance and trust. These programs are designed to give employers, unions, and benefit plan officials the tools they need to correct potential violations proactively. By empowering the regulated community with clarity and collaboration, we are continuing to fulfill the Department of Labor’s mission to put both workers and employers first.”
Employers must meet the eligibility requirements of each specific program, which include, among other things, the employer must not be currently under investigation by the DOL or involved in any litigation related to the potential violation at issue.
Benefits of participation in each of these voluntary programs include: limiting (and in some cases, avoiding) monetary and other penalties related to violations; avoiding costly enforcement actions and private litigation; employers control the timing and scope of the disclosures or participation in the offered programs as applicable; discovered violations are resolved efficiently, and in some cases (as with the PAID Program described below), include releases from affected employees; and participating employers demonstrate a strong, good faith effort to comply with their legal obligations to their employees.
U.S. Department of Labor – Wage and Hour Division
The DOL has reinstated its Payroll Audit Independent Determination (PAID) Program, which when originally introduced (2018) allowed employers to voluntarily disclose and correct wage violations related to the minimum wage, overtime, and employee classification provisions of the Fair Labor Standards Act (FLSA). Suspended in 2021, the relaunched PAID Program still allows employers to voluntarily disclose and correct FLSA related violations, but now includes an opportunity to voluntarily disclose and correct certain violations of the Family Medical Leave Act (FMLA). By utilizing the PAID Program, employers work with the Wage and Hour Division to address FLSA and FMLA violations, to ensure that employees receive their correct compensation (including back wages if applicable) and other benefits, before formal enforcement actions by the DOL or private litigation is commenced, and by doing so, avoid the penalties provided for under the FLSA and/or FMLA, which can be significant.
Employee Benefits Security Administration (EBSA)
EBSA offers two self-correction programs. The Voluntary Fiduciary Correction Program (VFCP) originally offered by the EBSA in 2022, was updated in March 2025 to include a self-correction feature (referred to as the Self-Correction Component, or SCC) for certain identified transactions related to a qualified Employee Retirement Income Security Act (ERISA) benefit plan. The goal of the VFCP and the SCC is to allow ERISA benefit plan administrators address and correct identified eligible transaction error (currently, there are 19 categories of eligible transaction errors) quickly to minimize the risk of penalties and avoid civil enforcement actions by the U.S. Department of Labor. By utilizing the VFCP, employers and ERISA benefit plan administrators are able to: correct transactions to prevent legal issues with the Department of Labor related to the administration of the plan; protect the retirement and health benefits provided to workers; and gain a better understanding of the legal duties involved in maintaining an ERISA benefit plan.
The Delinquent Filer Voluntary Compliance Program (DFVC) allows for the submission of overdue annual ERISA plan reports (Form 5500) by ERISA benefit plan administrators with a lower civil penalty.
Occupational Safety and Health Administration (OSHA)
OSHA’s Voluntary Protection Program (VPP), which has been around since 1982, has been expanded to “meet businesses where they are on their safety journey” and is designed to establish a cooperative relationship between OSHA and the employer, pursuant to which the employer implements effective safety and health management systems, to prevent workplace fatalities, injuries, and illnesses. Admission into the VPP requires an employer to submit an application to OSHA, which includes a rigorous on-site evaluation of the employer’s operations and facilities by a team of safety and health professionals. Approved VPP participants are re-evaluated periodically (usually every three to five years) to maintain VPP status and are exempt from OSHA programmed inspections while such status is maintained. In furtherance of the VPP, OSHA has increased its efforts to support voluntary compliance through its On-Site Consultation Program (celebrating 50 years this year), which is a confidential workplace evaluation provided to small- to medium-sized businesses (250 or fewer onsite employees and fewer than 500 corporate-wide employees), at no-cost, to improve worker safety by addressing workplace hazards without fear of citations or monetary penalties. Employers who successfully complete the On-Site Consultation Program are awarded “SHARP” status through OSHA’s Safety & Health Achievement Recognition Program, which, similar to VPP status, exempts the SHARP employer from OSHA-programmed inspections for up to two years.
Veterans’ Employment Training Service
The Veterans’ Employment Training Service (VETS) has launched a new program called Support and Assistance for Leaders in USERRA Training and Employment (SALUTE), which is aimed at assisting employers with their compliance obligations under the Uniformed Services Employment and Reemployment Rights Act (USERRA), the federal law protecting the rights of service members in the workforce. Through the SALUTE Program, employers may request technical assistance from VETS to address and resolve any issues and/or questions related to USERRA. SALUTE requests are submitted via electronic mail to VETS using an auto-generated email accessible via the SALUTE webpage. Participating employers will receive informal guidance from VETS on how USERRA applies in the circumstances provided by the requesting employer.
The first step in availing the benefits of each of these programs is a detailed internal audit of the employer’s applicable policies, procedures, and practices.
