USDOL's Payroll Audit Independent Determination (PAID) pilot program is meant to provide employers with the framework to proactively resolve potential FLSA claims. Nonetheless, on the whole, it seems that the benefits and risks are not particularly distinguishable from an investigation.
Employers should be encouraged to make voluntary back-wage payments with confidence that doing so will terminate their FLSA liability.
Management's signing a U.S. Wage and Hour Division "Summary of Unpaid Wages" on-the-spot might complicate later challenges to the factual assumptions, reasoning, and/or legal conclusions underlying the back-wages assessed.
After more than a year, USDOL has finally disclosed at least some information concerning its "policy" of sometimes insisting that an employer pay liquidated damages as a condition of resolving alleged FLSA violations at the investigative stage.
The U.S. Department of Labor's internal "policy" regarding FLSA liquidated damages remains unclear and undisclosed.
The U.S. Labor Department's final "Guidance" concerning President Obama's July 2014 "Fair Pay and Safe Workplaces" Executive Order suggests that the agency might be applying an improper standard in determining what is a "willful" violation of the FLSA.
The U.S. Labor Department reports that a temporary-staffing employee has received $1,152 in back-wages and unspecified "other damages" for what it contended was a violation of the FLSA's Section 7(r).
Elite Model Management Corporation's agreement to pay up to $450,000 to settle a lawsuit by former interns could lead to more complaints and litigation.
The 11th Circuit U.S. Court of Appeals has expanded its restrictions upon FLSA settlements to situations involving former employees.
A decision from the 7th Circuit U.S. Court of Appeals offers an important reminder to employers about the potential for successor liability under the FLSA.