The Ensuring Workers Get PAID Act establishes a voluntary program at the Department of Labor called the Payroll Audit Independent Determination (PAID) program, which allows employers to self-audit their payroll practices, identify wage and hour violations, and voluntarily pay back wages to affected employees without facing federal enforcement actions. The program targets employers who have unintentionally violated minimum wage or overtime requirements under the Fair Labor Standards Act and applies to both private sector and government employers. To participate, employers must submit detailed applications including results of self-audits, lists of affected employees, calculations of unpaid wages, and assurances that violations have been corrected; the Department of Labor has 30 days to approve qualifying applications. Once approved, affected employees receive settlement offers that include their unpaid wages, but they can choose to accept the settlement or decline it and pursue private legal claims instead. The bill builds on a successful 2018 pilot program that recovered over $4.1 million in back wages to 7,429 employees through 74 cases, with employers recovering wages faster and more efficiently through self-audit than through traditional enforcement. The legislation includes protections against retaliation and prohibits the Department from using application information against employers in future investigations unless there are serious health and safety concerns.
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