Ensuring Workers Get PAID Act of 2025
The Ensuring Workers Get PAID Act of 2025 establishes a permanent Payroll Audit Independent Determination (PAID) program within the Department of Labor. This program allows employers to voluntarily identify and correct unintentional violations of minimum wage and overtime requirements under the Fair Labor Standards Act through self-audits. Employers acting in good faith can apply to participate, conduct their own audits, calculate back wages owed to affected employees, and settle these claims under Department of Labor supervision. The program aims to return wages to workers more efficiently than traditional enforcement methods while protecting employers who voluntarily come forward from expanded investigations. Based on a successful 2018-2019 pilot program, the legislation codifies this approach as a permanent compliance tool.
Key Points
- 1Employers can voluntarily self-audit wage and overtime violations and apply to resolve them through the PAID program without triggering Department of Labor investigations, provided they are acting in good faith and not already under investigation
- 2The program returned significantly more money to workers during its pilot phase: average back wages per case were $55,828 (4 times higher than traditional enforcement) and cases were resolved in 19 hours versus 41 hours for traditional methods
- 3Employees affected by violations receive offers to settle for full back wages owed, but they retain the right to decline the settlement and pursue private legal action instead
- 4Employers who participate are protected from having their application information used against them in investigations or court proceedings, and the scope of violations cannot be expanded beyond what the employer self-identified
- 5The program excludes workers subject to prevailing wage requirements under H-1B, H-2B, H-2A visa programs, Davis-Bacon Act, or Service Contract Act