DOL Relaunches PAID Program Allowing Employers to Self‑Report Violations

The Department of Labor relaunched its PAID program on July 24, 2025, letting employers in the United States 🇺🇸 self-report FLSA and FMLA violations for quick fixes and faster payments nationwide.

The initiative is active now, with the Wage and Hour Division setting a 15‑day payment clock and an estimated case timeline of under 90 days to close most audits.

What’s new and why it matters

The PAID program now covers both FLSA minimum wage and overtime issues and certain FMLA problems. The Department of Labor (DOL) also revived its Opinion Letter Program and stated it “will not seek liquidated damages” in pre-litigation settlements tied to this process.

Together, these steps aim to:

• Speed up back pay to workers
• Encourage employers to correct problems without court fights
• Provide clearer agency guidance through renewed opinion letters

According to DOL materials, the PAID program is “active and accepting employer participation” as of July 24, 2025. Employers can apply, but acceptance isn’t guaranteed—the agency retains full discretion to deny participation.

How the PAID program works

Employers follow a set path under Wage and Hour Division (WHD) oversight:

1. Mandatory review: Study WHD compliance help materials before any step.
2. Self-audit: Check pay and FMLA practices to identify possible violations.
3. Reporting: Identify affected workers, calculate back wages or FMLA remedies, and send details to WHD.
4. WHD review: The agency reviews calculations and issues a summary of money or remedies due.
5. Payment: Employers must pay all back wages or implement FMLA fixes within 15 days of the WHD summary.
6. Proof: Employers send proof of payment to WHD promptly after paying.
7. Settlement forms: WHD issues forms that explain terms and narrow releases for each employee.

WHD estimates most cases will wrap up in fewer than 90 days.

Who can and cannot use it

The program is voluntary but has strict eligibility limits.

Ineligible employers include those:

• Under WHD investigation or in litigation for the same practices.
• Who used the PAID program for the same practices within the past three years.
• Who had FLSA or FMLA violations found in the last three years.
• Whose affected employees are in H-1B, H-2A, or H-2B programs, or covered by the Davis-Bacon Act or Service Contract Act.

Additional participant rules:

• Employees can accept or reject payments. If they reject, they may still bring private claims.
• Retaliation against any worker for their choice is prohibited.
• Any release is narrow—covering only the specific FLSA or FMLA problems disclosed and resolved through PAID. It does not cover state law claims.
• Participation for the same practices is limited to once every three years.

Timelines and scope (at a glance)

• Payment deadline: 15 days from WHD’s summary.
• Estimated duration: Under 90 days, start to finish.
• Limit: One use every three years for the same practices.

Impact on immigrant and visa workers

The PAID program does not apply to employees in H-1B, H-2A, or H-2B visa categories, nor to jobs covered by the Davis-Bacon Act or Service Contract Act.

• This excludes many seasonal farm and non-farm roles and certain federal contract positions.
• For mixed workforces, employers must separate covered employees from excluded visa roles, which can complicate cleanup even when employers want fast, across-the-board resolution.

Example: A hotel with both year-round staff and H-2B seasonal workers that finds unpaid overtime must separate covered employees from excluded visa roles when using PAID.

Reactions from the field

• Employer groups: Welcome the program for speed and clarity, helping correct mistakes quickly and avoiding drawn-out disputes.
• Worker advocates: Wary—employees can reject payments and pursue private claims; there is concern the program could reduce deterrence if employers rely on it after the fact.

The DOL positions PAID as part of a broader push to support self-correction. Officials also relaunched opinion letters to answer practical pay-rule questions. As the agency states, it “will not seek liquidated damages” in PAID-related pre-litigation settlements, which reduces risk for employers who move quickly to fix errors.

Key quote: “The Department ‘will not seek liquidated damages’ in PAID-related pre-litigation settlements,” lowering employer risk for timely corrections.

Background and policy context

• The PAID program began in April 2018 as a pilot under President Trump, focused on FLSA wage and overtime issues.
• In January 2021, the program was suspended under President Biden due to worker-protection concerns.
• The 2025 relaunch expands coverage to certain FMLA violations and imposes tighter schedules for payment and documentation.

This relaunch also responds to reported staffing pressures at WHD: by streamlining voluntary corrections, the Department can direct resources toward willful or repeat offenders while still moving money to affected workers.

What this means for employers

• If you find potential FLSA or FMLA violations, PAID provides a structured path to fix them swiftly.
• Be prepared to:
  • Fully disclose issues and submit careful calculations.
  • Pay all back wages or apply FMLA remedies within 15 days of WHD’s summary.
  • Provide proof of payment promptly.
• Remember:
  • DOL may deny participation.
  • Employees may reject payment and file private claims.
  • Releases cover only the specific federal issues disclosed.
  • You cannot use PAID if the same practices are already under investigation or litigation, or if excluded worker groups are involved.

Practical tip: Build an internal audit team including HR, payroll, legal, and operations. Map every pay rule and leave policy to your systems—your records will drive the timeline and outcomes if you proceed with PAID.

What this means for workers

• Expect faster payment where employers join PAID and WHD approves.
• You choose whether to accept the offered payment.
• You can still bring your own claims if you believe more is owed.
• Retaliation is not allowed whether you accept or reject the payment.

Note: If your job is tied to H-1B, H-2A, or H-2B programs, PAID won’t apply to your role under this relaunch.

How to start and where to read more

Employers and employees can review program details and contact WHD through the official PAID page: https://www.dol.gov/agencies/whd/paid

According to analysis by VisaVerge.com, the program’s stricter deadlines and broader scope signal a move to faster resolutions while keeping worker choice intact.

Key takeaways

• The PAID program is live and open to employers as of July 24, 2025.
• It covers FLSA minimum wage and overtime, plus certain FMLA issues.
• Pay or apply remedies within 15 days of WHD’s summary; most cases close in under 90 days.
• Exclusions apply for H-1B, H-2A, H-2B, Davis-Bacon, and Service Contract roles.
• Employees can reject payments and still pursue private claims.
• The DOL may decline participation and limits repeat use for the same practices to once every three years.

Action step for employers: If you discover a pay or leave problem, decide quickly whether PAID’s faster timeline and limited releases fit your situation.

Action step for workers: If you receive a PAID offer, review it carefully and consider getting advice before you accept or decline.