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.
The 11th Circuit U.S. Court of Appeals has expanded its restrictions upon FLSA settlements to situations involving former employees.
A decision by the 5th Circuit U.S. Court of Appeals suggests that courts might begin to enforce private FLSA settlements in some situations.