The Department of Labor Just Relaunched Its Voluntary Self-Audit Program
On July 24, 2025, the U.S. Department of Labor (DOL) officially revived its Payroll Audit Independent Determination (PAID) program — a move that could be game-changing for employers who want to get ahead of compliance issues before the DOL comes knocking.
But here’s the thing: it’s not just a PR campaign.
It’s a real opportunity to protect your business from costly wage/hour and FMLA violations — if you act before they escalate.
Let’s break down what this means for you.
What Is the PAID Program?
The PAID program is a voluntary self-audit initiative that allows employers to:
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Review their own FLSA (wage/overtime) and FMLA compliance
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Self-report violations to the DOL
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Pay back wages or FMLA remedies within 15 days
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Avoid penalties, litigation, and certain damages
In short: it’s a second chance to make things right — before things get expensive.
✅ Benefits of Participating
Employers who qualify can:
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Avoid litigation and class action lawsuits.
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Resolve issues faster and more quietly.
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Retain more control over the audit scope.
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Potentially avoid liquidated damages (which often double back pay).
⚠️ What to Watch Out For
The program doesn’t apply to every business, and it won’t protect you from:
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State or local wage law violations.
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Pending investigations or lawsuits.
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Past PAID program use in the last 3 years.
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Incomplete disclosure (you must share all relevant info).
And — it doesn’t stop employees from pursuing private legal action after the fact. So it’s critical to enter the program with expert guidance and full understanding of your risk.
What This Means for Your Business
If you’re not 100% sure that your:
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Employees are classified correctly (exempt vs. non-exempt).
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Overtime policies are compliant.
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FMLA tracking and documentation are in order.
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Pay practices match federal and state guidelines…
Then it’s time to act — not wait.
Because once the DOL opens an investigation, the PAID window closes.
How Expert Human Resources Can Help
We’ve spent 16+ years helping employers prevent HR disasters. And now with AI-enhanced compliance tools, we can help you:
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Spot red flags in your wage/hour practices.
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Assess your FMLA policies and leave tracking.
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Classify employees correctly and legally.
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Get ahead of risk before it grows.
Our HR Risk Pulse + AI Turnover Snapshot is a free, 20-minute consult that helps identify where your greatest exposure may be — fast.
Final Word
The DOL is giving employers a rare opportunity to correct mistakes without fear of a legal ambush.
Don’t wait for a knock on the door.
Let’s review your policies now — so you can move forward with confidence, not consequences.
