DOL announces return of PAID program
The Department of Labor (DOL) recently announced the return of the Payroll Audit Independent Determination (PAID) program. PAID is a voluntary compliance initiative that helps employers resolve inadvertent violations of the Fair Labor Standards Act (FLSA)—such as unpaid overtime or minimum wage—without litigation or civil monetary penalties. This announcement extended the reach of PAID to violations under the Family and Medical Leave Act (FMLA).
PAID timeline
Here’s a timeline of the PAID program from its inception to the present:
- Launched in 2018. PAID began as a six-month pilot program under the first Trump administration to encourage self-reporting of wage violations. It was designed to promote compliance and facilitate worker restitution without costly enforcement actions.
- Suspended in 2021. The program was discontinued in early 2021 during the Biden administration amid concerns that it let employers off too easily by allowing them to avoid penalties and liquidated damages.
- Reinstated in July 2025. The DOL has announced it is resuming the program. The current version aims to strike a balance between encouraging compliance and ensuring workers are fully paid.
Why an employer might use PAID
Employers may elect to use PAID for several reasons, including the following:
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