What happened?

On July 24, 2025, the U.S. Department of Labor announced an expansion to the Payroll Audit Independent Determination (PAID) program.

Overview:

The Payroll Audit Independent Determination (PAID) program has now been expanded to include Family and Medical Leave Act (FMLA) violations.

What Is the PAID Program? The PAID program is a voluntary initiative that allows employers to:

• Conduct internal audits of wage and leave practices.
• Report potential violations of the Fair Labor Standards Act (FLSA) and FMLA to the Department of Labor’s Wage and Hour Division (WHD).
• Resolve issues by paying back wages or implementing other remedies within 15 days of WHD’s summary.

Who Can Participate? To qualify, employers must:

• Be covered under FLSA or FMLA.
• Not be under investigation or litigation for the same issues.
• Not have participated in PAID for the same violations in the past 3 years.
• Disclose any recent employee complaints and keep WHD updated during the audit.
• Acknowledge that participation does not waive employee rights under other laws.

Limitations to the Program:

• No anonymity: Employers must self-identify to WHD.
• No retroactive protection: Past payments outside PAID would not release claims.
• Limited releases: Employees only waive claims for violations identified in the audit.
• State law risks remain: PAID does not protect against state or local wage claims.

New Features in 2025

• Expanded scope: Now includes FMLA violations.
• Faster resolution: Back wages must be paid within 15 days.
• Standardized settlement forms: Issued by WHD for each employee.
• Safe Harbor policy encouraged: Employers should include this in handbooks to promote early reporting of wage concerns.
• Case-by-case approval: WHD reviews each application individually.
• FMLA non-wage remedies: Procedures for issues like leave restoration are still under development.

Source References

• DOL PAID Program – Resources
• DOL PAID Program – Press Release

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