The "Ensuring Workers Get PAID Act of 2025" establishes the Payroll Audit Independent Determination (PAID) program within the Department of Labor, aiming to foster collaboration with employers to voluntarily remedy unintentional minimum wage and overtime violations under the Fair Labor Standards Act (FLSA). This program builds upon a successful 2018 PAID pilot, which demonstrated that self-audits efficiently returned more back wages to employees and reached employers not typically prioritized for traditional enforcement. Under the new program, employers can submit an application to the Administrator of the Wage and Hour Division, including detailed results of a self-audit . This self-audit must identify potential violations, list affected employees with payroll records, calculate unpaid wages, and provide contact information. Employers must assure that identified violations have been corrected and that they are not currently under investigation or litigation for the specific issues. The program excludes employees subject to prevailing wage requirements under certain visa programs or acts like Davis-Bacon. The Administrator reviews applications, consulting with employers and allowing amendments to ensure accuracy of the self-audit and wage calculations. For approval, the employer must be acting in good faith , have no prior FLSA minimum wage or overtime violations within the preceding five years, and generally not have participated in the program before for the same violation. If approved, the Administrator supervises a settlement process where affected employees are offered their unpaid wages. Employees can accept this offer, which, upon full payment, constitutes a waiver of their private right of action for those specific violations, or they can decline and preserve their legal rights. The bill includes several protections and limitations for employers: denied applications cannot be used for investigations (except for specific risks), the scope of violations cannot be expanded, and no payments are required for participation. Information submitted in an application is exempt from discovery without employer consent. Finally, the bill amends the FLSA to prohibit retaliation against employees who accept or decline a settlement offer under the PAID program.
Accounting and auditingAdministrative remediesDepartment of LaborEmployment discrimination and employee rightsLabor-management relationsLabor standardsPersonnel recordsWages and earnings
Ensuring Workers Get PAID Act of 2025
USA119th CongressS-2267| Senate
| Updated: 7/14/2025
The "Ensuring Workers Get PAID Act of 2025" establishes the Payroll Audit Independent Determination (PAID) program within the Department of Labor, aiming to foster collaboration with employers to voluntarily remedy unintentional minimum wage and overtime violations under the Fair Labor Standards Act (FLSA). This program builds upon a successful 2018 PAID pilot, which demonstrated that self-audits efficiently returned more back wages to employees and reached employers not typically prioritized for traditional enforcement. Under the new program, employers can submit an application to the Administrator of the Wage and Hour Division, including detailed results of a self-audit . This self-audit must identify potential violations, list affected employees with payroll records, calculate unpaid wages, and provide contact information. Employers must assure that identified violations have been corrected and that they are not currently under investigation or litigation for the specific issues. The program excludes employees subject to prevailing wage requirements under certain visa programs or acts like Davis-Bacon. The Administrator reviews applications, consulting with employers and allowing amendments to ensure accuracy of the self-audit and wage calculations. For approval, the employer must be acting in good faith , have no prior FLSA minimum wage or overtime violations within the preceding five years, and generally not have participated in the program before for the same violation. If approved, the Administrator supervises a settlement process where affected employees are offered their unpaid wages. Employees can accept this offer, which, upon full payment, constitutes a waiver of their private right of action for those specific violations, or they can decline and preserve their legal rights. The bill includes several protections and limitations for employers: denied applications cannot be used for investigations (except for specific risks), the scope of violations cannot be expanded, and no payments are required for participation. Information submitted in an application is exempt from discovery without employer consent. Finally, the bill amends the FLSA to prohibit retaliation against employees who accept or decline a settlement offer under the PAID program.
Accounting and auditingAdministrative remediesDepartment of LaborEmployment discrimination and employee rightsLabor-management relationsLabor standardsPersonnel recordsWages and earnings