It’s not often that the government offers us a chance to notify them we’ve been violating the law and still avoid the resulting penalties for doing so!
But that’s exactly what the new pilot program called PAID does.
We’ve got all the details you need about this great opportunity to ensure you’re in compliance without penalties!
How PAID works:
PAID (Payroll Audit Independent Determination) is a six-month program launched by the U.S. Department of Labor on March 6th.
PAID allows employers to conduct a self-audit of their compliance with the Fair Labor Standards Act.
The types of compliance issues reviewed might include:
- Not paying for “off the clock” work
- Failure to pay for overtime
- Misclassifying workers as exempt under the FLSA
If an employer has compliance issues:
If an employer finds that they have compliance issues, they must report them to the Department of Labor with specific info regarding:
- Which employees were affected
- The timeframe involved
- Calculations of wages due
- Information on corrections being made to prevent problems in the future
Employers would have to pay all back wages to the affected employees.
The great benefit to employers is that the DOL will provide a safe harbor from monetary penalties and liquidated damages!
It’s easy to be non-compliant:
It’s not uncommon for small businesses to have compliance issues, often just because they didn’t know better or understand the rules.
Fear of repercussions can keep businesses from correcting their problems. That’s why PAID is such an excellent opportunity to set the record straight and start with a clean slate.
PAID makes the employees whole, and business owners and managers will sleep better at night. Sounds like a win-win!