On January 29, 2021, the U.S. Department of Labor announced the immediate termination of its Payroll Audit Independent Determination Program (PAID).  Launched in March 2018 by the Wage and Hour Division (WHD), PAID was intended to resolve wage and hour disputes with greater expediency and at lower cost to employers.  However, in the WHD’s press release, Principal Deputy Administrator Jessica Looman indicated that the program had not achieved the desired effect, stating that the PAID “program deprived workers of their rights and put employers that play by the rules at a disadvantage.”

PAID incentivized employers to self-report overtime and minimum wage violations of the Fair Labor Standards Act (FLSA) by mitigating the threat of not only penalties and extended statute of limitations, but also foreclosing affected workers from taking any private action based on the identified violations.  In exchange, the DOL would supervise settlements, approve agreements, and ensure 100% payment of back wages.

However, many were skeptical of PAID since its inception, including employers and state officials. PAID’s self-reporting provisions only resolved FLSA issues, not state law claims, exposing employers to state liability in exchange for their voluntary disclosures.  Furthermore, employers could not utilize PAID to resolve issues already under investigation by WHD or existing threat of litigation.

Despite PAID’s termination, employers should continue to be vigilant by auditing pay records and correcting any discovered wage issues.  Employers may also continue to utilize DOL-supervised settlements of FLSA claims.

*          *         *

Please contact Michael S. Kun, Paul DeCamp, Jeffrey H. Ruzal, and Kevin D. Sullivan for assistance with questions regarding the FLSA and wage and hour issues.

*Law Clerk – Admission Pending 

Back to Wage and Hour Defense Blog Blog

Search This Blog

Blog Editors


Related Services



Jump to Page


Sign up to receive an email notification when new Wage and Hour Defense Blog posts are published:

Privacy Preference Center

When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.

Strictly Necessary Cookies

These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information.

Performance Cookies

These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance.