What Workers Need to Know About the Return of the DOL’s PAID Program

Author: Bob DeRose | Barkan Meizlish DeRose Cox, LLP

The Department of Labor (DOL) recently announced the return of its Payroll Audit Independent Determination (PAID) program, a voluntary initiative that allows employers to self-report violations of the Fair Labor Standards Act (FLSA) and now, the Family and Medical Leave Act (FMLA). While the program is framed as a way to help employers fix mistakes and quickly pay back wages, workers need to understand exactly what it means for their rights and their paychecks.

The PAID program was first launched in 2018 under the Trump administration. It was designed as a pilot program to encourage employers to admit when they failed to pay workers properly, particularly in cases of unpaid overtime or minimum wage violations. By self-reporting, employers could avoid lawsuits, penalties, and liquidated damages while still paying back wages to affected employees. The program was suspended in 2021 under the Biden administration, with critics arguing it let employers off too easily. But in July 2025, the DOL reinstated PAID, promising a more balanced version that encourages compliance while ensuring workers are made whole.

From an employer’s perspective, PAID has clear benefits. It allows them to resolve violations quickly without the expense and reputation damage of litigation. Employers who use PAID can avoid paying penalties or liquidated damages and instead cut a check for only the back wages owed. On the surface, that might seem like a win for employees too — after all, they get paid faster. But here’s the problem: workers may be giving up much more than they realize.

Under the FLSA, when an employer willfully violates the law — meaning they had no good faith basis for their actions — the consequences are more serious. In those cases, workers are not only entitled to their unpaid wages but also to liquidated damages, which can double the amount owed. Just as importantly, the law requires the employer to cover the employee’s attorney fees and expenses. This is designed to make sure workers have real access to justice and that employers are held fully accountable when they knowingly cheat employees. By agreeing to a PAID settlement, workers often waive their right to pursue these additional remedies.

Another critical point is that employees are under no obligation to accept a PAID settlement. The program only resolves the specific issues the employer discloses, and workers asked to participate may still choose to pursue their claims in court instead. Employers cannot use PAID if they are already under investigation or facing litigation, and the program does not shield them from accountability for other wage violations that remain undisclosed.

For workers, this means caution is essential. If your employer approaches you with a PAID settlement, remember that you may be entitled to more than just back wages. Before signing anything, you should talk to a lawyer who can evaluate whether your employer’s violations were willful and whether you’re entitled to liquidated damages, attorney fees, and additional compensation.

The return of the PAID program creates an opportunity for employers to self-correct, but it also creates risks for workers who may not realize they are giving up valuable rights. Simply put: don’t let your employer’s “voluntary compliance” shortchange you again. If you think your wages have been stolen — whether it’s unpaid overtime, off-the-clock work, or other violations — call us today or fill out our online form. We’ll fight to make sure you get every dollar you earned and the full protections the law provides.

Posted in Uncategorized | No Comments »