Payroll on Bloomberg Tax is built to get you to the right answer faster and more efficiently. Get all the payroll intelligence you need with Bloomberg Tax expert analysis, perspectives and...
A nationwide pilot program to allow employers to report themselves for potentially violating overtime and minimum wage laws was unveiled March 6 by the Labor Department.
The Payroll Audit Independent Determination self-auditing system is to start soon and run for six months before it is reviewed to determine changes and whether to make it permanent, the department said in a news release and on its website. By reporting potential violations, employers likely would avoid large fines, the department said.
The program is intended to quickly resolve wage and hour claims without lawsuits and to improve employers’ compliance with minimum wage and overtime requirements under the Fair Labor Standards Act, including off-the-clock work and worker misclassification, the department said.
“Right now, if a company is aware of a mistake, there is no simple mechanism for them to come forward and say we made a mistake, we want to voluntarily come forward and pay our back wages,” Labor Secretary Alexander Acosta said March 6 at a House subcommittee hearing on the Labor Department budget.
Under the program, the department’s Wage and Hour Division is to assess the amount of wages owed and then supervise payment of back wages to employees without other costs, such as attorneys’ fees, Acosta said.
FLSA-covered employers are eligible to participate in the pilot, the department said, noting that participating companies that report violations and work to resolve issues would not have to pay civil penalties.
To participate, employers must review the program information that the department is to make available on its website and then audit payment practices for potential noncompliance, the department said.
Employers must identify potential violations, affected employees, and the time periods when employees were affected. The amount of back wages that may be owed to each employee would have to be calculated before employers contact the Wage and Hour Division to request participation.
The Wage and Hour Division would advise eligible employers how to submit information, including related calculations accompanied by evidence and explanations, and certifications that program information was reviewed.
Employers would have to ensure that related compensation practices were not being litigated or arbitrated, and that policies would be adjusted to avoid similar potential violations. The program may not be used to resolve issues under investigation by the division or to resolve repeated violations, the department said.
The division would issue a summary of unpaid wages and forms describing settlement terms that employees must sign to receive payments, which would be made by the next full pay period after receiving the summary of unpaid wages. Proof of payment also must be provided to the division.
Copyright © 2018 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)