HR2299-119

What This Bill Does

The Ensuring Workers Get PAID Act of 2025 codifies a voluntary Department of Labor program modeled on the 2018 Payroll Audit Independent Determination pilot. Congress cites pilot results of $4,131,238 in back wages for 7,429 employees, average back wages of $55,828 per case, and faster self-audits than traditional compliance actions. The bill defines affected employees, employers, good faith, self-audits, the Secretary of Labor, and the Wage and Hour Division Administrator. The Administrator must establish a PAID program for employers that inadvertently violate Fair Labor Standards Act minimum-wage or overtime requirements and voluntarily remedy unpaid wages within the Portal-to-Portal Act statute of limitations. Within 30 days, DOL must provide compliance-assistance resources. Employers must apply with self-audit materials, affected-employee lists, payroll records, wage calculations, correction assurances, litigation and communication assurances, and exclusions for H-1B, H-2B, H-2A, Davis-Bacon, and Service Contract Act prevailing-wage workers. The Administrator reviews applications, may request amendments, approves qualifying applications within 30 days, supervises settlement and payment, provides release forms to employees, lets workers decline and preserve private claims, bars use of rejected applications in investigations except limited safety-related cases, limits investigation scope to employer-identified violations, forbids participation fees, and protects application materials from discovery without employer consent.

Who Benefits and How

Affected employees benefit by receiving unpaid minimum wages or overtime through supervised settlements when they accept the offer. Good-faith employers benefit from a structured self-audit pathway that can correct inadvertent FLSA violations and limit released claims after full payment. The Wage and Hour Division benefits from employer-submitted payroll records, calculations, and corrections that can recover wages faster than some traditional investigations. Employees who decline settlement benefit because the release form must explain their right to preserve private FLSA claims. Employers in sectors not typically prioritized for enforcement benefit from a compliance-assistance route that still returns back wages to workers.

Who Bears the Burden and How

The Wage and Hour Division Administrator must create the program, publish resources, review applications, verify wage calculations, supervise settlements, issue release forms, and enforce program limits. Participating employers must conduct self-audits, correct practices, identify affected employees, calculate back wages, provide payroll records, and pay all approved amounts. Worker advocates may face concern that employees who accept payment waive private FLSA claims and liquidated damages for the covered violations. Employers with recent FLSA violations, pending investigations, litigation, or employee settlement communications are excluded from good-faith participation. Prevailing-wage workers under H-1B, H-2B, H-2A, Davis-Bacon, and Service Contract Act rules are excluded from the program.

Key Provisions

• Establishes a Payroll Audit Independent Determination program in the Wage and Hour Division.
• Requires DOL compliance-assistance resources within 30 days after enactment.
• Requires employer applications with self-audit results, affected-employee lists, payroll records, wage calculations, and correction assurances.
• Requires the Administrator to review applications, request amendments when needed, and approve qualifying applications within 30 days.
• Requires supervised settlements and full payment of unpaid minimum wages or overtime to accepting employees.
• Preserves private FLSA claims for employees who decline settlement offers.
• Bars use of unapproved applications in investigations except limited safety-related cases.
• Prohibits DOL from charging employer participation fees and limits discovery of application materials.