H.R. 2299

119th CONGRESS 1st Session

To establish the Payroll Audit Independent Determination program in the Department of Labor.

IN THE HOUSE OF REPRESENTATIVES · March 24, 2025 · Sponsor: Mr. Grothman · Committee: Committee on Education and Workforce

Table of contents

• H.R. 2299
  • SEC. 1. Short title
  • SEC. 2. Findings
  • SEC. 3. Definitions
  • SEC. 4. Payroll Audit Independent Determination program

SEC. 1. Short title

• This Act may be cited as the Ensuring Workers Get PAID Act of 2025.

SEC. 2. Findings

• Congress finds the following:
  • In 2018, the Department of Labor launched the nationwide Payroll Audit Independent Determination pilot program (referred to in this section as ). PAID pilot program
  • The Secretary of Labor, acting through the Administrator of the Wage and Hour Division, established the PAID pilot program to complement enforcement and compliance assistance tools undertaken by the Wage and Hour Division of the Department of Labor.
  • The Secretary has a longstanding practice of providing self-audit and office audit programs, as noted by Secretary Marty Walsh in a response for the record following a hearing before the Committee on Education and Labor of the House of Representatives on June 9, 2021.
  • The Wage and Hour Division, through the PAID pilot program, worked with employers on a voluntary basis to remedy unintentional violations of the Fair Labor Standards Act of 1938 (), which is the Federal statute establishing minimum wage, overtime pay, recordkeeping, and youth-employment requirements affecting employees in the private sector and in Federal, State, and local governments. 29 U.S.C. 201 et seq.
  • The PAID pilot program yielded positive results for employers and employees. Between April 1, 2018, and September 15, 2019, the Wage and Hour Division concluded 74 PAID pilot program cases, representing less than one percent of all compliance actions under the Fair Labor Standards Act of 1938, with a total of $4,131,238 in back wages paid to 7,429 employees through such PAID pilot program cases.
  • Self-audits through the PAID pilot program by employers returned more back wages to employees in less time than compliance actions overall. In fact, during the period described in paragraph (5)—
    • the average back wages paid per case for PAID pilot program cases ($55,828) were more than 4 times the average back wages paid per compliance action ($11,355);
    • the average back wages paid per enforcement hour for PAID pilot program cases ($2,864) was more than 10 times greater than the average back wages paid per enforcement hour for compliance actions ($279);
    • on average, nearly 10 times more employees received back wages in each PAID pilot program case than in investigations conducted using traditional methods;
    • self-audits through the PAID pilot program averaged 19 hours per case as compared to 41 hours per case for the Secretary conducted using traditional methods; and
    • self-audits through the PAID pilot program reached employers that the Wage and Hour Division would not typically prioritize for enforcement, including government establishments and industry sectors with higher-wage occupations.

SEC. 3. Definitions

• In this Act:
  • The term affected employee means an employee affected by a violation of a minimum wage or overtime hours requirement of the Fair Labor Standards Act of 1938 (), excluding any employee subject to prevailing wage requirements under the H–1B, H–2B, or H–2A visa programs, subchapter IV of of title 40, United States Code (commonly referred to as the ), or of title 41, United States Code (commonly known as the ). The term means an employee affected by a violation of a minimum wage or overtime hours requirement of the Fair Labor Standards Act of 1938 (), excluding any employee subject to prevailing wage requirements under the H–1B, H–2B, or H–2A visa programs, subchapter IV of of title 40, United States Code (commonly referred to as the ), or of title 41, United States Code (commonly known as the ). Davis-Bacon Act Service Contract Act 29 U.S.C. 201 et seq.; chapter 31; chapter 67
  • The term Administrator means the Administrator of the Wage and Hour Division of the Department of Labor.
  • The term — employee
  • The term employer has the meaning given such term in section 3 of such Act.
  • The term good faith means, with respect to an employer applying for participation in the Payroll Audit Independent Determination program established under section 4, that such employer is not, at the time such employer submits an application for such program—
  • The term Secretary means the Secretary of Labor.
  • The term self-audit means an audit conducted by an employer to resolve inaccuracies by the employer in the computation of wages and overtime compensation required under the Fair Labor Standards Act of 1938 within the statute of limitations described in section 6(a) of the Portal-to-Portal Act of 1947 (). 29 U.S.C. 255(a)

SEC. 4. Payroll Audit Independent Determination program

• (a) Program establishment
  • The Administrator shall establish a Payroll Audit Independent Determination program (referred to in this section as the ) to foster collaboration with employers that inadvertently violate the Fair Labor Standards Act of 1938 () to voluntarily remedy, within the statute of limitations described in section 6(a) of the Portal-to-Portal Act of 1947 (), unpaid minimum wages or overtime compensation owed to any affected employee under the Fair Labor Standards Act of 1938. program 29 U.S.C. 201 et seq.; 29 U.S.C. 255(a)
• (b) Application requirements
  • (1) Resources for compliance assistance
    • Not later than 30 days after the date of enactment of this Act, the Administrator shall make available to employers resources for assistance in complying with the Fair Labor Standards Act of 1938, including content regarding wage and hour requirements, which shall be offered online, through printed materials, and through other outreach activities.
  • (2) Application
    • An employer seeking to participate in the program shall submit an application to the Administrator that includes—
      • materials related to and the results of a self-audit, including—
        • (i) an identification of any practice of such employer identified in a self-audit that may violate a minimum wage or overtime compensation requirement of the Fair Labor Standards Act of 1938; and
        • (ii) a list of each employee who may be an affected employee with respect to such violation, including—
        • the period of time such employee would have been affected by such violation;
        • payroll records related to such employee for such period with information on the hours of work performed by such employee;
        • calculations of unpaid minimum wages or overtime compensation owed to such employee under the Fair Labor Standards Act of 1938 with a description of the methodology of such calculation and supporting evidence; and
        • contact information for such employee;
      • an explanation of the scope of potential violations of a minimum wage or overtime compensation requirement of such Act for inclusion in a release of claims under subsection (d);
      • an assurance that any practice of such employer that violates a minimum wage or overtime compensation requirement of the Fair Labor Standards Act of 1938 that is identified in the self-audit has been corrected to comply with such Act;
      • an assurance that such employer has, prior to submitting such application, reviewed the compliance assistance resources made available under paragraph (1) and all program information, terms, and requirements;
      • an assurance that, on the date of submission of such application, such employer—
        • (i) is not involved in any litigation regarding any practice of such employer that is identified in the self-audit; and