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October 1, 2025

You NOW Have a Way to Fix Payroll or FMLA Errors Without Triggering Expensive Litigation

The Trump administration just handed Florida employers a get-out-of-jail-free card for wage and hour violations, and most HR directors don’t even know it exists. After 30+ years representing companies in DOL investigations and FLSA lawsuits, I can tell you this opportunity won’t last forever—and you only get to use it once. 

The Department of Labor’s PAID program (Payroll Audit Independent Determination) is back and expanded to include Family and Medical Leave Act violations. This means you can finally fix those payroll mistakes that have been keeping you up at night without facing federal litigation, civil money penalties, or liquidated damages. 

The original PAID program launched in 2018 and worked so well the new administration brought it back with even more benefits. But most businesses don’t understand the catch—and missing this could cost you big time. 

Why You Can’t Just Cut a Check and Walk Away 

Here’s what most HR directors learn the hard way: you cannot simply pay an employee to resolve Fair Labor Standards Act or FMLA claims. Federal law requires either Department of Labor approval or judicial oversight (meaning a lawsuit) to get a valid release. 

I’ve watched countless companies try to handle wage violations privately, only to get sued later because their “settlement” was not binding (you still get a set off for what you paid). Without proper legal resolution, employees can still sue for the same violations you thought you’d paid for. 

Traditional DOL investigations are worse. When they investigate your company, they do not just look to recover the underpaid wages.  But the DOL traditionally sought Civil Money Penalties that can reach six figures.  (though the DOL has indicated it may go away from CMPs at least during the remainder of the Trump administration) 

What Makes PAID Different 

The relaunched PAID program lets you self-report a payroll error and obtain real releases without investigation or litigation risks: 

  • No Civil Money Penalties: PAID waives CMPs entirely. This alone can save companies hundreds of thousands of dollars. 
  • No Liquidated Damages: Under normal FLSA enforcement, you pay double damages. PAID eliminates this penalty. 
  • Valid Releases: You get legally binding releases that actually protect you from future lawsuits.  However, the release is limited to the Pay issue you are fixing. 
  • You Control the Process: Instead of waiting for complaints or investigations, you control the timeline. 

The Details That Matter 

After three decades handling wage and hour disputes, I know which details make the difference: 

The One-Time Rule Actually Helps: Yes, you can only use PAID once per company, but this creates incentive to audit thoroughly and fix everything at once. Companies that address violations piecemeal face multiple investigations and exponentially higher costs. 

Training Requirements Protect You: The DOL’s online training isn’t just bureaucracy—it protects you from repeating mistakes. Courts and investigators look favorably at companies that demonstrate compliance commitment through documented training. 

Audit Certification Creates Legal Protection: Certifying that you’ve audited practices and achieved compliance isn’t just paperwork. This documentation helps defend future claims and shows good faith compliance efforts. 

Resolve Systemic Issues economically.  One of the PAID programs best uses is addressing a large payroll error that impacts a lot of employees.  Employers can mitigate the threat of class/Collective Actions (and the resulting costs) but addressing an issue through PAID.  You fix the issue with what you should have paid originally without additional penalties or costs.   

How to Use PAID Before It Disappears 

Companies that successfully use PAID follow this approach: 

Audit Everything: Don’t limit yourself to obvious violations. Look at classification issues, overtime calculations, meal periods, and FMLA administration. Find everything before filing. 

Calculate Real Exposure: Most companies underestimate potential liability. Traditional FLSA violations include back wages, liquidated damages, attorney’s fees, and potential CMPs. Document these savings when presenting PAID benefits to leadership. 

Fix Systems First: PAID requires certifying current compliance. Use this to upgrade payroll systems, update policies, and train managers properly. 

Don’t Wait Too Long: Prepare properly, but don’t delay. If employees complain or DOL investigates, you lose the opportunity.  Also, President Trump instituted a PAID program during his last administration AND the new administration discontinued it as soon as they went in office.  Therefore, you have a limited window to address big pay issues (before the next president assumes office). 

What Disqualifies You from PAID 

  • Active Investigations: If DOL is already investigating, you can’t use PAID for those violations 
  • Pending Lawsuits: Existing litigation prevents PAID participation 
  • Bad Faith: Companies with willful violation patterns may be rejected 
  • One Shot Only: You can’t use PAID again after your first submission 

Why Companies Wait Too Long 

I’ve seen too many businesses postpone wage and hour audits until they’re facing investigations or lawsuits. By then, PAID is gone and companies face full DOL enforcement—CMPs, liquidated damages, and public scrutiny. 

The companies that benefit most act before problems explode. They recognize wage and hour violations compound over time. Every month you wait increases exposure and reduces PAID’s value. 

Your Action Plan 

  1. Audit all wage and hour practices—overtime calculations, worker classification, FMLA administration 
  1. Calculate exact amounts owed with documentation 
  1. Fix underlying problems before certifying compliance 
  1. File self-report with complete documentation and payment plan 

Don’t Let This Slip Away 

PAID represents a unique chance to resolve wage and hour problems on your terms, not the government’s. But this comes with strict limitations that demand expert guidance. 

As a labor and employment attorney at Kelley Kronenberg with decades of DOL investigation and FLSA litigation experience, I help Florida businesses navigate PAID successfully while meeting all requirements. 

Whether you suspect violations or want preventive audits, PAID offers unprecedented protection for companies taking proactive steps. Don’t wait for the Department of Labor to come knocking—by then, this option disappears. 

Contact me at Kelley Kronenberg to discuss how PAID can protect your company from wage and hour liability while ensuring employees receive what they’re owed. We’ll review your situation and determine if PAID makes sense before these opportunities disappear. 


David S. Harvey
Partner, Labor & Employment
Kelley Kronenberg-Tampa, FL
(813) 223-1697
Email
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David S. Harvey practices labor and employment law at Kelley Kronenberg, where he counsels employers on wage and hour compliance, DOL investigations, and FLSA defense matters. He represents Florida businesses across all industries in employment-related disputes and compliance issues.