top of page
Search

The Return of the PAID Program

Aug 13, 2025
2 min read

Updated: Aug 27, 2025

The Department of Labor (DOL) recently reinstated the PAID (Payroll Audit Independent Determination) program, offering employers a proactive path for resolving potential wage and hour violations under the Fair Labor Standards Act (FLSA). Originally ceased in 2021, the program’s return highlights the federal government’s interest in encouraging employers to self-audit and correct mistakes before they escalate into legal action.


If your organization has been holding off on a wage and hour review, now may be the time to revisit that conversation, especially with a few important changes rolled into the 2025 version of the program.


What the PAID Program Offers

The PAID program allows employers to voluntarily disclose and resolve certain wage and hour violations, such as unpaid overtime and minimum wage shortfalls. To participate, employers must:

  • Not be currently under investigation or facing litigation for the issue

  • Pay 100% of back wages owed

  • Provide detailed information about the scope of the violation

  • Complete payment within 15 days of receiving the DOL’s summary


Employers cannot use the program for the same type of violation more than once every three years.


What’s New This Time Around

Compared to its original rollout, the updated PAID program now:

  • Includes certain FMLA-related violations

  • Shortens the payment window to 15 days

  • Requires faster documentation and proof of payment to the DOL


Why It Might Be Worth Considering

For employers committed to staying in compliance, the PAID program offers a structured process to correct problems before they turn into formal investigations or expensive lawsuits. The program is entirely voluntary, and unlike a standard DOL audit, you maintain more control over the scope and timing of the review.


But it is not without risks. Participating in the program doesn’t shield you from potential state law claims, especially in states that allow for longer statute of limitations or additional damages beyond what is required under federal law. And with a tighter payment deadline, participating requires planning and readiness.


What Employers Can Do Now

If you have identified potential pay issues (misclassified roles, missed meal breaks, or questions about timekeeping accuracy) don’t wait for a complaint to surface. Conducting a self-audit can help uncover problems early and allow you to make corrections strategically.


A few smart steps:

  • Partner with your HR or legal team to evaluate whether any issues qualify under the PAID program

  • Review classifications and timekeeping processes

  • Assess your readiness to act quickly if you decide to move forward with the program participation


Final Thoughts

The PAID program is not a blanket solution, but it is a valuable opportunity for employers to resolve issues on their own terms. Whether you choose to participate or simply use this as a reminder to audit your pay practices, it is another example of how being proactive pays off.

Need help navigating compliance or exploring whether the PAID program makes sense for your organization? We’re here to help.

 
 

Recent Posts

See All
Open Enrollment: What Employees Need From You

Benefits may be one of your largest expenses outside of payroll. Open enrollment is one of the few times employees actively engage with that investment. Most employees aren't focused on renewal costs,

 
 
Can I Drug Test an Employee in California?

An employee appears impaired at work. There has been a workplace accident. A manager wants to start random drug testing. Can you require a drug test? In California, the answer depends on the circumsta

 
 
What Makes Employees Feel Supported During Change

Change is part of running a business. You may be growing, restructuring, introducing new technology, changing leadership, or adjusting how work gets done. Whatever the reason, employees are often focu

 
 

Subscribe to our blog

Schedule a consultation today

PRIVACY  ​

  • LinkedIn

© 2018, HR DONE RIGHT INC., ALL RIGHTS RESERVED.601 UNIVERSITY AVENUE, SUITE 104, SACRAMENTO, CA 95825

bottom of page