RPJ Partner Deena R. Merlen Discusses New DoL Program Regarding Minimum Wage and Overtime Pay Violations

RPJ Partner Deena R. Merlen Discusses New DoL Program Regarding Minimum Wage and Overtime Pay Violations
March 8, 2018 RPJ Law

March 8, 2018

On Tuesday, March 6, 2018, the United States Department of Labor (DoL) introduced the Payroll Audit Independent Determination (PAID) program, a new pilot program concerning the process for resolving certain overtime and minimum wage violations under the Fair Labor Standards Act.

Under this program the Wage and Hour Division of the DoL will oversee resolution of potential violations by assessing the amount of wages due and supervising their payment to employees.  Settlements under the PAID program will be limited in scope to only the potential violations at issue, and employers who choose to participate in the program and work with the Division to rectify their compensation errors will not be subjected to penalties or liquidated damages that the Division might otherwise impose.

However, employers may not participate in the PAID program if they are in litigation or currently under investigation by the Division for the practices at issue. Nor may employers use the pilot program repeatedly to resolve the same potential violations, as this program is designed to identify and correct potentially non-compliant practices and ensure future compliance.  Accordingly, the program further requires employers to review the Division’s compliance assistance materials, audit their pay practices and agree to correct the pay practices at issue going forward.

The PAID pilot program will be implemented by the Division nationwide for approximately six months, after which the Division will evaluate the program and consider future options.  More information concerning the pilot program is available on the DoL website.

Deena R. MerlenThis article is intended only as a general discussion of these issues. It is not considered to be legal advice or relied upon. If you need assistance with a particular employment or wage and hours matter, Deena R. Merlen would be pleased to provide additional details or advice about specific situations.  Ms. Merlen focuses her practice on employment/labor law, intellectual property, entertainment and general business/corporate law.

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