Labor Department Opens Wage Violation Self-Reporting Pilot Program

Caroline Brown was quoted in the Material Handling & Logistics article “Labor Department Opens Wage Violation Self-Reporting Pilot Program.” This article describes a new six-month long pilot program launched by the U.S. Department of Labor (DOL) on March 6 called the Payroll Audit Independent Determination (PAID). The PAID program allows employers to self-report their own violations of wage and hour regulations.

Caroline warns, “DOL's proposal to provide a less adversarial avenue for employers to achieve compliance is a welcome one, and it might be very tempting to employers who have struggled with resolving claims outside of court. Unfortunately, while in many ways preferable to private litigation, the benefits of the program are to be determined still.”

She stresses that there is no particular reason at this time to believe the process will be less burdensome than a DOL Wage and Hour Division investigation. In fact, the only aspect guaranteed to move quickly is the payment of back wages, which are due by the end of the next full pay period after the division receives the employer’s summary of unpaid wages. “This is a much shorter timeframe than historically permitted in investigations, and simply might not be feasible,” Caroline adds.

To read the full article, please visit Material Handling & Logistics.