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Department of Labor Relaunches PAID Program to Oversee Wage and Leave Self-Audits

The Wage and Hour Division’s new rules outline how employers can gain supervised settlements through the PAID program.

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Overview

  • The Wage and Hour Division relaunched the PAID program on July 24, 2025, reversing its 2021 suspension and extending supervised self-audits to Fair Labor Standards Act and Family and Medical Leave Act issues.
  • Participating employers must apply to the DOL, certify absence of related investigations or litigation, and submit comprehensive audit data and proposed remedies for WHD review.
  • Approved settlements guarantee payment of back wages or FMLA relief without routine pre-litigation liquidated damages, while preserving employees’ right to refuse the offer and pursue private suits.
  • WHD retains discretion to demand enhanced remediation or reject applications, and state and local wage-and-hour claims remain unaffected by PAID participation.
  • The PAID relaunch accompanies a broader DOL push to expand self-audit programs across labor statutes and faces potential congressional action to cement its permanent authority.