Self-audit initiative would limit liability if violations found

 

Sometimes, self-audits of a company’s payroll process may uncover surprising issues with paying workers correctly.

 

The Dept. of Labor (DOL) is throwing a lifeline to employers who discover wage problems with its newest initiative, the Payroll Audit Independent Determination (PAID) program.

 

Specific requirements

 

Under the PAID program, companies that report any pay problems they uncover after a self-audit are allowed to correct them without participating in a long, costly legal battle with employees.

 

After reporting the issue to the DOL, employers would only be responsible for paying ay back wages owed to workers. There’d be no additional penalties or fees.

 

DOL experts said the PAID program was designed to quickly resolve overtime and minimum wage violations of the Fair Labor Standards Act, including cases where companies misclassify employees as exempt from overtime. The program is best for good-faith employers who unknowingly made mistakes with workers’ pay and want to resolve the situation as painlessly as possible.

 

To that end, companies that have already come under fire in the last five years for the same issue they’re self-reporting, or those that are currently facing a lawsuit due to the pay issue, aren’t eligible to participate.

 

Participating companies must be prepared to identify the specific violation to the DOL, along with the names of affected employees, the time frame in which they were affected and calculated of how much they owe in back wages.

 

All relevant payroll and timekeeping records should be submitted to the DOL to support these claims.

 

The pilot program will last for approximately six months. The DOL will then determine its effectiveness and decide whether to continue the PAID program.

 

More info about the PAID program is available at www.dol.gov/whd/paid