WASHINGTON, D.C. — A new program launched by the Department of Labor’s Wage and Hour Division is intended to quickly resolve potential overtime and minimum wage violations under the Fair Labor Standards Act (FLSA), but whether the effort will actually work is in question.
The Payroll Audit Independent Determination (PAID) program aims to facilitate review of potential FLSA wage violations quickly by allowing employers to self-audit and resolve claims voluntarily without legislation.
“The PAID program will ensure that more employees receive back wages they are owed — faster,” the DOL said in a new release announcing the program. “Employees will receive 100% of the back wages paid, without having to pay any litigation expenses, attorneys’ fees or other costs that may be applicable to private actions.”
The Wage and Hour Division plans to implement this self-audit program nationwide for six months, and then will decide if it will be a permanent program.
Critics of the program are skeptical that it will encourage employers to fully comply with FLSA compensation obligations. David Weil, the head of the DOL’s Wage and Hour Division under former President Barack Obama, criticized Labor Secretary Alexander Acosta’s new back-pay program in an interview with Politico’s Morning Shift: “If [police] had people report every time they went over the speed limit on the highway … and you got a note saying ‘Oh, you shouldn’t do that’ — what purpose does that serve for an enforcement agency?”
Weil characterized the DOL’s message by saying, “We want you to comply with the law, but when you don’t comply with the law, we’re going to make you pay what you should have anyway … I don’t see it moving the needle at all.”
Employers and employees can learn more about the program by visiting the DOL PAID program webpage.
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Author: Department of Labor (DOL)
Source: WorldatWork – Workspan