The Department of Labor has kicked off a pilot program that encourages employers to audit their pay practices and self-report any Fair Labor Standards Act violations they might find.
Officials say the Payroll Audit Independent Determination program is a win for both employers and employees. Employers get to avoid liquidated damages, while employees get back pay that that they otherwise might not have received.
The program launched in early April and will stay in effect nationwide for six months.
Employers will be encouraged to audit their practices, flag any minimum wage or overtime violations they fine, and report them to DOL’s Wage and Hour Division.
Employers will then work with that division to correct their errors and ensure workers are paid as quickly as possible.
When employers attempt to resolve violations through the PAID program, employees must sign a release of claims in exchange for their back wages. But employees can refuse, and employers are prohibited from retaliating against employees who choose not to sign.
Employers who don’t make a good faith effort to comply with law, that are under investigation or are repeat offenders won’t be eligible to use the program.
About the Author
Lon is the former publisher of the Colorado Springs Business Journal and Colorado Springs Military Newspaper Group.He has served in leadership roles at various newspapers in Iowa, Florida and Wisconsin. Lon received his Bachelor of Arts in Communications from the University of Wisconsin, Eau Claire and attended the Kellogg Graduate School of Management at Northwestern University. Earlier in his career, Lon spent several years as a sea captain and held a 100-ton Coast Guard license. Lon is a former rugby player, referee and administrator and now coaches under 13 year old kids. Lon has served on the boards of numerous community and business organizations including Colorado Springs Leadership Institute, Peak Venture Group, CS Quality of Life Indicators Business Index Committee, Junior Achievement and is a member of The Colorado Thirty Group. Lon was given the “Making the Pikes Peak region a better place to live work and play” award by the CS Chamber of Commerce, was the VFW Post 1’s business citizen of the year.