DOL Payroll Audit Program

The US Department of Labor’s (DOL) Wage and Hour Division
(WHD) has announced a new pilot program to begin in
April to expedite resolution of certain minimum wage and
overtime violations. See the notice at the link below:
https://www.dol.gov/newsroom/releases/whd/whd20180306

The program is called Payroll Audit Independent
Determination (PAID).

The program is similar to an IRS Tax Amnesty program.
PAID is designed for companies that have known WHD
violations that they would like to correct without
litigation, civil monetary penalties, and liquidated
damages.

Typical WHD violations include:
*Off-the-clock work.
*Failures to pay overtime at one-and-one-half times the
regular rate of pay.
*Misclassification of employees as exempt from overtime
requirements.

To participate in the program, employers must first review
the requisite information about the program and compliance
assistance materials—all of which will be available on
this website.

Employers must then audit their compensation practices for
potentially non-compliant practices. If an employer
discovers any non-compliant practices, or if an employer
believes its compensation practices may be lawful but
wishes to proactively resolve any potential claims anyway,
the employer must then:
#1 Specifically identify the potential violations,
#2 Identify which employees were affected,
#3 Identify the timeframes in which each employee was
affected, and
#4 Calculate the amount of back wages the employer
believes are owed to each employee.

The WHD has provided FAQs which can be found at the
following link:
https://www.dol.gov/whd/paid/

The pilot program will run for approximately 6 months,
while the WHD evaluates it.

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