Moving Clients through DOL’s Self-Reporting PAID Program

The Department of Labor (DOL) has launched a self-reporting program that allows employers to pre-emptively remedy potential wage and hour issues discovered during a self-audit – without incurring penalties and added expense. The Payroll Audit Independent Determination – known as PAID – encourages employers to conduct audits and come forward if they discover minimum wage or overtime violations. Employers that self-report through this formal and transparent program may work in good faith with the Wage and Hour Division to correct mistakes and compensate employees in an expedited manner.

Littler and ComplianceHR offer PAID Forward, a service to help employers identify and voluntarily correct Fair Labor Standards Act (FLSA) compliance issues that can be corrected under the PAID program. When back wages are paid and potential issues corrected, you’ll avoid:

  • Liquidated, or double, damages
  • Civil money penalties (up to $1,965 per employee)
  • Plaintiffs attorneys’ fees

Issues that can be corrected under the PAID program

  • Misclassification (exempt or nonexempt, for example)
  • Off-the-clock work
  • Regular rate and overtime calculation issues

Littler and ComplianceHR as Your Advocate

As industry leaders in employment law and legal technology, Littler and ComplianceHR will take you through the PAID program with Littler PAID Forward, ensuring that your pay practices are compliant from this day forward. Combining our attorneys’ vast knowledge of Fair Labor Standards Act (FLSA) audits with ComplianceHR’s web-based applications, we will partner with you to deliver dependable, straightforward guidance.

First, we will determine if your company meets the eligibility requirements to participate in PAID and, if so, complete the following steps with Littler PAID Forward:

  • Conduct the audit to assess compliance with FLSA minimum wage and overtime requirements using the award-winning ComplianceHR compliance app.
  • Prepare submissions to DOL that identify scope of potential violations and affected employees.
  • Calculate the amount of back wages and describe the methodology used to calculate the back wages.
  • Propose actions that correct compensation practices to ensure future compliance with the FLSA.
  • Negotiate with DOL to ensure the practices you want to correct are not subject of litigation.
  • Obtain FLSA waivers from employees who accept back wages.

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