Pilot Program Aims to Resolve Minimum Wage and Overtime Violations

Filed in Labor, Safety and Health by on April 3, 2018 0 Comments

The U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) today began a nationwide six-month pilot program to resolve potential overtime and minimum wage violations under the Fair Labor Standards Act. (FLSA).

DOL says that the program’s primary objectives are to “resolve such claims expeditiously and without litigation, to improve employers’ compliance with overtime and minimum wage obligations, and to ensure that more employees receive the back wages they are owed – faster.”

The program, known as the Payroll Audit Independent Determination (PAID) program, covers potential violations of FLSA overtime and minimum wage requirements. Examples include violations based on alleged “off-the-clock” work, failures to pay overtime at one-and-one-half times the regular rate of pay, or misclassification of employees as exempt from FLSA minimum wage and overtime requirements.

To participate in the PAID program, an employer must identify the potential violations, determine which employees were affected and ascertain the time periods for the violations. Then, the employer must calculate the amount of back wages it believes are owed to each employee.

The next step is for the employer to contact the DOL/WHD to request participation in the PAID program and have the agency to supervise the payment of the back wages to the employee.

It should be noted that employers cannot use the PAID program to resolve claims that are already being investigated, or in litigation or arbitration. Employees can reject any proposed resolution and still file suit.

Read DOL’s program FAQ.

DOL will conduct a free webinar on Tuesday, April 10 from 1 p.m. to 2 p.m. EDT to show how the PAID program works. You can register here.

For more information, contact Alexis Moch at 800-368-5242 x8407.

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