In an effort to create a win-win solution for both employers and employees, the Department of Labor has extended its pilot compliance program, called the Payroll Audit Independent Determination (PAID). The purpose of this program is to help employees get paid for wages they have earned and to help employers correct past payroll mistakes.
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Joint Employment, Wage and Hour Changes are on the Regulatory Horizon
Employers will face fewer significant regulations in the coming year, according to the Trump administration’s Unified Agenda of Regulatory and Deregulatory Actions (“regulatory agenda”). Released on October 17, 2018, the fall regulatory agenda outlines each agency’s rulemaking efforts at any stage in the process—from requests for information to final regulations—and gives estimated timelines for completion. This regulatory to-do list provides insight into the administration’s upcoming priorities.
BLS Releases New Data on “Electronically Mediated” Workers
On Friday, September 28, 2018, the Department of Labor’s Bureau of Labor Statistics (BLS) issued its first estimate of how many U.S. workers participate in electronically mediated (online platform) work, and concluded that “electronically mediated workers” accounted for 1.0% of total employment in May 2017.
Six New DOL Opinion Letters Attempt to Clarify Federal Labor Laws
The U.S. Department of Labor (DOL) announced that it issued six new opinion letters. DOL opinion letters are designed to provide clarity to federal labor laws. The six new DOL opinion letters interpret issues under the Fair Labor Standards Act (FLSA) and Family and Medical Leave Act (FMLA).
DOL Issues Employer-Friendly Opinion Letters
Executive Summary: Last week, on August 28, 2018, the U.S. Department of Labor (DOL) issued four Fair Labor Standards Act (FLSA) opinion letters. In welcome late-summer news to employers, each opinion is employer-friendly. Below is a summary of each.
DOL Issues Six New Opinion Letters and Establishes a New Office of Compliance Initiatives
The U.S. Department of Labor (DOL) has issued six new opinion letters addressing various matters under the federal Fair Labor Standards Act (FLSA) and Family and Medical Leave Act (FMLA). According to the DOL, the release of this guidance “demonstrates the agency’s continued commitment to providing meaningful compliance assistance to help employees understand their rights and ensure that employers have the information they need to comply with federal labor laws.” The DOL also announced the formation of an Office of Compliance Initiatives to strengthen employer compliance assistance.
DOL Issues New Information on its PAID Self-Audit and Self-Reporting Program
Last month, we reported on the U.S. Department of Labor, Wage and Hour Division’s (“WHD”) newly created Payroll Audit Independent Determination (“PAID”) Program, through which employers can proactively seek to resolve potential and actual violations of the Fair Labor Standards Act (“FLSA”). The WHD recently issued additional information on the program. While not all-encompassing, the new publication sheds more light on the program’s mechanics and the “steps” employers must take to participate.
DOL Issues Three Opinion Letters and One Fact Sheet
On April 12, 2018, the United States Department of Labor issued three opinion letters that provide guidance on how employees without “normal working hours” should be compensated for travel time involving an overnight stay, whether rest breaks provided as a reasonable accommodation are compensable, and what forms of lump-sum payments can be garnished for child support. In addition, the DOL issued a fact sheet detailing when teachers, coaches, and other professionals who work at higher education institutions should be paid overtime.
DOL Launches “PAID” Self-Audit Program
On April 3, 2018, the U.S. Department of Labor’s Wage and Hour Division (WHD) launched the Payroll Audit Independent Determination program (PAID) on a six-month trial basis. The intent of the program is to allow employers to pay back wages to workers for inadvertent overtime and minimum wage violations under the Fair Labor Standards Act (FLSA) while avoiding penalties and litigation expenses.
What to Make of the DOL’S PAID Program
You may have read about the U.S. Department of Labor’s new “Payroll Audit Independent Determination” or “PAID’’ pilot program. Under this program, the DOL invites employers to voluntarily audit their payroll practices and disclose any “non-compliant practices” to the DOL. The DOL then reviews the employer’s records and calculations of what is owed to employees, and tells the employer what it thinks the employer should pay. The employer then pays its employees, and employees sign a release of any FLSA claims against the employer. Participating employers are not subject to civil monetary penalties and are not required to pay liquidated damages to employees. (Available details on the program are included in the DOL’s press release and a FAQ page on the DOL’s website.)
Getting “PAID” Just Got Easier: The DOL Rolls out a Pilot Initiative to Streamline the Resolution of Wage and Hour Violations
Executive Summary. On March 6, 2018, the Wage and Hour Division (W&HD) of the U.S. Department of Labor (DOL) rolled out a new nationwide pilot initiative, called the Payroll Audit Independent Determination program—or “PAID.” This initiative is designed to streamline the resolution process of potential overtime and minimum wage violations of the Fair Labor Standards Act (FLSA). Such potential violations as “off-the-clock” work violations, failures to pay overtime wages, or employee misclassification would expressly fall within the ambit of PAID. According to the W&HD, PAID’s objectives are expeditious resolution of FLSA claims without litigation, improved employer compliance with its overtime and minimum wage obligations under the law, and a fast delivery of owed back wages to workers.
DOL Launches Payroll Audit Independent Determination (PAID) Program to Promote Self-Reporting and Early Resolution of Wage and Hour Claims
On March 6, 2018, the U.S Department of Labor’s Wage and Hour Division announced its new Payroll Audit Independent Determination (PAID) program. Initially being rolled out as a six-month pilot program, PAID provides employers with a unique opportunity—and indeed, motivation—to proactively address potential wage and hour underpayments under the Fair Labor Standards Act (FLSA) while simultaneously helping to protect themselves against litigation threats from the DOL and individual employees. While the details of the PAID program are yet to be announced, the DOL has announced the basic outline.
Update on DOL Overtime Rule Litigation
As employers will recall, last year the Department of Labor (under the prior Obama administration) issued a new rule dramatically increasing the minimum salary to qualify for an exemption from overtime under the Fair Labor Standards Act. Shortly before the new rule was to take effect, a Texas court issued a preliminary nationwide injunction enjoining the new rule. The DOL appealed that ruling and the appeal has been pending (but is not yet decided) before the Fifth Circuit Court of Appeals. Meanwhile, the litigation before the Texas trial court has continued and on Thursday, the same judge that issued the earlier preliminary injunction granted summary judgment in favor of the state plaintiffs challenging the rule.
DOL’s Revival of Opinion Letters and Request for Input on Overtime Rules Welcome News for Employers
Executive Summary: The U.S. Department of Labor (DOL) has announced that it will return to the practice of issuing Opinion Letters in response to inquiries from businesses regarding federal wage and hour issues, a practice abandoned under the prior administration. The DOL has also taken affirmative steps to seek additional public comment on the overtime rules proposed last year, the legality of which is currently being challenged in federal court. Both developments should be welcome news to employers, as they signal that the Department will likely provide more guidance to businesses with respect to compliance under the FLSA and that it may be taking steps towards revising the proposed overtime rules.
Opinion Letters Are Back!
The U.S. Department of Labor’s Wage & Hour Division announced today that it is bringing back the WHD Opinion Letter.