CHARLOTTE, N.C.—The U.S. Department of Labor recently announced a pilot program designed to help employers resolve inadvertent minimum wage and overtime violations without litigation.

Womble Bond Dickinson attorney Richard Rainey discussed the proposed Payroll Audit Independent Determination (PAID) program with HR Daily Advisor. He said that the program may particularly help employers with a small number of violations that involve relatively minor dollar amounts.

“I do see this as a potential benefit for employers in the right situations,” Rainey tells HR Daily Advisor. “I expect that employers will still approach this program cautiously as there are advantages and disadvantages to participation.”

Rainey explained that inadvertent FLSA violations aren’t uncommon, as the law is highly technical. Employers may encounter a “gray area” and make a judgment call in good faith that turns out to be in violation.

He said employers should consider the following factors when deciding on whether or not to participate in the PAID program:

  • Number of employees involved,
  • Amount of money involved,
  • Anticipated response from employees,
  • Confidence that the issues are limited, and
  • Whether they will create additional issues by resorting to the program.

Click here to read “Caution Advised for Employers Considering DOL’s New PAID Program” at HR Daily Advisor.

Also click here to read Rainey’s recent article on “North Carolina Hospital Settles Religious Discrimination Claims Over Flu Vaccine Policy”.

Richard Rainey is a labor and employment attorney with extensive experience litigating employment disputes on behalf of employers in the courtroom and before administrative agencies such as the Equal Employment Opportunity Commission, the National Labor Relations Board and the U.S. and N.C. Department of Labor. His litigation practice also includes actions involving covenants not to compete, theft of trade secrets, unfair competition, employee raiding, fair housing and equal credit.