Ensuring Workers Get PAID Act of 2025

The "Ensuring Workers Get PAID Act of 2025" establishes the Payroll Audit Independent Determination (PAID) program within the Department of Labor. This program is designed to foster collaboration with employers to voluntarily remedy unintentional violations of the Fair Labor Standards Act (FLSA) concerning unpaid minimum wages or overtime compensation. It builds upon a successful pilot program that demonstrated quicker resolution and higher back wage recovery for employees compared to traditional enforcement actions. To participate, employers must submit an application including results of a self-audit, identifying any violating practices and listing affected employees with calculated back wages. Employers must assure that identified practices have been corrected and that they are acting in "good faith," meaning they are not currently under investigation or subject to litigation for the alleged violations. The Administrator of the Wage and Hour Division reviews these applications, providing resources and opportunities for amendment. Upon approval, the Administrator supervises the settlement process, where employers pay the full amount of unpaid wages. Affected employees receive a settlement offer, which, if accepted and paid in full, constitutes a waiver of their private right of action under the FLSA for the addressed violations. Employees retain the right to decline the offer and pursue their own legal claims. The bill includes safeguards, such as prohibiting the Administrator from using information from denied applications in investigations, except in specific health and safety risk cases. It also prevents the expansion of the scope of violations beyond those identified by the employer and exempts application information from discovery in court proceedings without employer consent. The program excludes employees subject to prevailing wage requirements under certain visa programs or acts like the Davis-Bacon Act.