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DOL PAID Program 2026: How Employers Can Self-Audit Wage Violations

The Labor Department relaunched and expanded the Payroll Audit Independent Determination program. It offers employers a structured route to identify and correct certain wage violations.

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DOL PAID Program 2026: How Employers Can Self-Audit Wage Violations

Quick answer: PAID allows participating employers to disclose and resolve certain FLSA and FMLA violations through a supervised process, but it requires complete calculations, cooperation, and payment.

What PAID is

The program is a Wage and Hour Division initiative for employers that voluntarily identify potential violations and seek a supervised resolution. The relaunched version includes FLSA wage issues and certain FMLA issues.

Issues that may be reviewed

General process

  1. Conduct a good-faith audit.
  2. Identify workers and workweeks.
  3. Calculate back wages.
  4. Contact the Wage and Hour Division.
  5. Submit records and calculations.
  6. Complete approved payments and documentation.

Limits

PAID is not designed to hide violations, force broad waivers, or replace pending litigation or an active investigation. State claims and penalties may remain outside the federal process.

Employee rights

Workers receive information about proposed payments and generally decide whether to accept the resolution. Employers must not pressure or retaliate against employees.

Frequently Asked Questions

Is PAID mandatory?

No.

Does it eliminate all liability?

No.

Can it be used during a lawsuit?

Generally not for the same practices.

Must employees accept?

Workers generally choose whether to participate.

Should state law also be audited?

Yes.

Official Sources

This article is for general educational purposes and is not legal, tax, accounting, payroll, or employment advice. Rules can change and may differ by state, locality, occupation, employer, and employee circumstances.

Reviewed for accuracy by the OvertimePayUSA editorial team using official labor sources such as the U.S. Department of Labor and state agencies.
Official Sources

This calculator is for educational purposes only. Consult your employer or a labor attorney for advice specific to your situation.

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Frequently Asked Questions

Can my employer require me to work overtime?
Yes. Employers can require overtime work. However, they must pay the required overtime premium (1.5x or higher per state law) for hours over the threshold. Refusing to work overtime may result in termination, but employers cannot refuse to pay overtime premiums that are legally owed.
What should I do if I think I'm owed unpaid overtime?
Document everything: save pay stubs, time records, emails, and any communications about hours worked. Calculate what you believe is owed. Contact your employer in writing first. If they don't respond satisfactorily, file a complaint with your state Department of Labor or the U.S. Department of Labor Wage and Hour Division. Consider consulting an employment attorney for large amounts.
Is my salaried position automatically exempt from overtime?
No. Many salaried positions still qualify for overtime pay. Exemption requires: (1) earning above the minimum threshold (~$35,500 federally, varies by state), and (2) spending more than 50% of time in exempt duties (executive, professional, administrative). If unsure, file a wage claim or consult an employment attorney.
Can I get overtime pay if I work multiple jobs?
Federal overtime laws (FLSA) typically count only hours for a single employer. However, some states have more generous rules. Hours worked for different employers at the same time usually don't combine for overtime purposes unless you're an independent contractor. Check your state's Department of Labor for specific rules.
What's the statute of limitations for claiming unpaid overtime?
Federally, you have 2-3 years to file a lawsuit for unpaid wages (3 years for willful violations). State laws vary: California allows 3-4 years, New York allows 6 years. For administrative complaints, the timeframe is often shorter (1-2 years). Act quickly if you believe you're owed wages.
Do I have to be paid for meal breaks?
If you work during a meal break or cannot take a true break away from your workstation, that time must be paid. If you take an actual, uninterrupted break (usually 20+ minutes), it can be unpaid. Rules vary by state—check your state's Department of Labor for specifics.
Can it be used during a lawsuit?
Generally not for the same practices.
Must employees accept?
Workers generally choose whether to participate.
⚖️ Statutory Legal Authority: Overtime pay calculations strictly follow the Fair Labor Standards Act (FLSA), 29 U.S.C. § 207 and U.S. Department of Labor (WHD) Regulations 29 C.F.R. Part 778. State daily overtime rules comply with California Labor Code § 510, Colorado COMPS Order #38, and Alaska Stat. § 23.10.060.