S. 2267: Ensuring Workers Get PAID Act of 2025

The Ensuring Workers Get PAID Act of 2025 aims to enhance compliance with the Fair Labor Standards Act (FLSA) by establishing a program at the Department of Labor known as the Payroll Audit Independent Determination program (PAID program). This program is designed to assist employers who unintentionally violate wage and overtime requirements to voluntarily rectify these issues before facing enforcement actions.

Key Provisions of the Bill

Program Establishment

The bill mandates the creation of the PAID program, which encourages employers to voluntarily address any inadvertent violations of FLSA requirements. Through this program, employers can conduct self-audits to identify and remedy issues related to unpaid minimum wages or overtime compensation. The program operates within the statute of limitations defined by the Portal-to-Portal Act.

Application Process

To participate in the PAID program, employers must:

• Submit an application that includes findings from a self-audit.
• Identify any potential violations of wage and hour laws.
• List affected employees and provide payroll information for the periods of violation.
• Certain assurances must be made by employers, such as not being under investigation for violations or involved in related lawsuits.

Resources and Support

Upon enactment, the Department of Labor will provide resources for employers to better understand their obligations under the FLSA. These resources will be accessible online, in print, and through outreach efforts.

Review and Approval of Applications

The Department of Labor will review submitted applications, and employers may be contacted for additional information if necessary. The bill stipulates a timeline for the approval process. If all criteria are met, the application will be approved within specified timeframes.

Settlement Process

Approved employers will receive a summary of the settlement terms, including a description of unpaid wages owed to affected employees. Each impacted employee will be offered a settlement, which they may accept or decline. If accepted, the employee waives their right to pursue further legal action related to the same violations.

Protections for Employers

If an employer’s application is not approved, the information submitted cannot be used against them in future investigations, thereby encouraging participation without the fear of legal repercussions. Additionally, the bill prohibits requiring employers to pay any fees to apply for or participate in the program.

Anti-Retaliation Measures

The bill also amends existing labor laws to protect employees from retaliation if they accept or decline a settlement offer made under the PAID program. This aims to ensure that employees can make decisions regarding their claims without fear of retribution from employers.

Relevant Companies

• None found