On January 29, 2021, the U.S. Department of Labor (DOL) immediately discontinued the Payroll Audit Independent Determination (PAID) program. Therefore, employers will no longer be able to self-report federal minimum wage and overtime violations in an effort to avoid the DOL from seeking liquidated damages or imposing penalties.

Under the Fair Labor Standards Act (FLSA), employers are required to pay their employees the federal minimum wage for every hour worked and overtime for every hour worked over 40 in a work week. Failure to comply with the FLSA exposes an employer to liability for payment of any back wages, which are doubled as liquidated damages, as well as fees and costs including attorney fees the employee incurs for having to bring an action against the employer.

Employers should note that the PAID program only applied to federal FLSA claims. It did not apply to state wage and hour claims. Employers should continue to audit their pay records to identify any wage and hour violations and correct same.

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Department of Labor Discontinues PAID Program

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