8/12/25 The Wage and Hour Division Expands the Payroll Audit Independent Determination Program

August 12, 2025

By Hannah LaChance  & Xavie Davenport

The U.S. Department of Labor’s Wage and Hour Division (“WHD”) has revived and expanded the 2018 Payroll Audit Independent Determination Program (“PAID”). The Program’s goal is to help employers ensure compliance with minimum wage and overtime laws. The Program has now expanded to potential violations under the Family Medical Leave Act (“FMLA”). 

The PAID Program can be utilized by most employers who are covered under the Fair Labor Standards Act (“FLSA”), and/or FMLA, subject to a few less common exceptions. The Wage and Hour Division website lists detailed steps for participation in PAID and services offered. As a part of the steps listed on the website, employers are expected to review WHD compliance materials and perform a self-audit where they identify potential violations and affected employees. Employers then submit their self-audit to WHD for review. After evaluation, the WHD will provide a summary of unpaid wages and violations, inclusive of guidance and next steps for employers to follow. Employers are expected to pay back wages and implement remedies within 15 days of receiving the summary report. Proof of payment and documentation of remedies is required.

Once an employer report is submitted and reviewed, the Wage and Hour Division provides a summary of unpaid wages due and the adequacy of proposed remedies. It is the employer’s responsibility to issue payment and implement remedies within 15 days of receiving finalized self-audit results from the WHD. 

For questions on whether to participate in the PAID program or for FLSA and FMLA compliance, contact Hannah LaChance at hlachance@barran.com or 503-276-2112.