Sponsors (3)
The bill speeds recovery of unpaid wages and lets employers voluntarily remediate errors—reducing enforcement burden and litigation—but does so at the cost of narrower coverage, limits on investigative use of application information, and weaker formal deterrents that may leave some vulnerable workers without full remedy.
Low-income employees: $4,131,238 in back wages were returned to 7,429 workers, putting owed pay directly into workers' pockets.
Employees who agree to PAID settlements: receive prompt payment of unpaid wages/overtime rather than waiting through litigation.
Workers overall: the PAID process resolved cases with far fewer enforcement hours per case (19 vs. 41), letting the Wage and Hour Division help more workers with the same staff.
Immigrant and prevailing‑wage workers: employees on H‑1B, H‑2A, H‑2B visas or covered by Davis‑Bacon/Service‑Contract Act prevailing‑wage rules are excluded from PAID and some 'affected employee' protections, denying them streamlined remediation.
Workers generally: because PAID is voluntary and focuses on negotiated repayments, some employers may avoid formal penalties and the program could reduce investigations that deter willful violations.
Employees who accept settlements: may waive private FLSA claims and thereby give up the chance to recover liquidated damages or larger awards available through litigation.
Based on analysis of 4 sections of legislative text.
Requires DOL to establish a voluntary PAID self-audit program so employers can remediate inadvertent FLSA wage/overtime violations and return back wages within the statute of limitations.
Official title: Establish the Payroll Audit Independent Determination program in the Department of Labor.
Introduced July 14, 2025 by Timothy Patrick Sheehy · Last progress July 14, 2025
Creates a permanent, voluntary Payroll Audit Independent Determination (PAID) program at the Department of Labor to let employers who inadvertently violate the Fair Labor Standards Act (FLSA) self-audit and quickly remediate unpaid minimum wages and overtime within the statute of limitations. The bill sets definitions, application and documentation rules for employers, requires the Wage and Hour Division to provide compliance materials within 30 days of enactment, and directs the Administrator to review applications, consult with employers, and allow amendments during the review and settlement process.