[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2267 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 2267
To establish the Payroll Audit Independent Determination program in the
Department of Labor.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 14, 2025
Mr. Sheehy (for himself, Mrs. Blackburn, and Mr. Budd) introduced the
following bill; which was read twice and referred to the Committee on
Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To establish the Payroll Audit Independent Determination program in the
Department of Labor.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Ensuring Workers Get PAID Act of
2025''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) In 2018, the Department of Labor launched the
nationwide Payroll Audit Independent Determination pilot
program (referred to in this section as ``PAID pilot
program'').
(2) The Secretary of Labor, acting through the
Administrator of the Wage and Hour Division, established the
PAID pilot program to complement enforcement and compliance
assistance tools undertaken by the Wage and Hour Division of
the Department of Labor.
(3) The Secretary has a longstanding practice of providing
self-audit and office audit programs, as noted by Secretary
Marty Walsh in a response for the record following a hearing
before the Committee on Education and Labor of the House of
Representatives on June 9, 2021.
(4) The Wage and Hour Division, through the PAID pilot
program, worked with employers on a voluntary basis to remedy
unintentional violations of the Fair Labor Standards Act of
1938 (29 U.S.C. 201 et seq.), which is the Federal statute
establishing minimum wage, overtime pay, recordkeeping, and
youth-employment requirements affecting employees in the
private sector and in Federal, State, and local governments.
(5) The PAID pilot program yielded positive results for
employers and employees. Between April 1, 2018, and September
15, 2019, the Wage and Hour Division concluded 74 PAID pilot
program cases, representing less than one percent of all
compliance actions under the Fair Labor Standards Act of 1938,
with a total of $4,131,238 in back wages paid to 7,429
employees through such PAID pilot program cases.
(6) Self-audits through the PAID pilot program by employers
returned more back wages to employees in less time than
compliance actions overall. In fact, during the period
described in paragraph (5)--
(A) the average back wages paid per case for PAID
pilot program cases ($55,828) were more than 4 times
the average back wages paid per compliance action
($11,355);
(B) the average back wages paid per enforcement
hour for PAID pilot program cases ($2,864) was more
than 10 times greater than the average back wages paid
per enforcement hour for compliance actions ($279);
(C) on average, nearly 10 times more employees
received back wages in each PAID pilot program case
than in investigations conducted using traditional
methods;
(D) self-audits through the PAID pilot program
averaged 19 hours per case as compared to 41 hours per
case for the Secretary conducted using traditional
methods; and
(E) self-audits through the PAID pilot program
reached employers that the Wage and Hour Division would
not typically prioritize for enforcement, including
government establishments and industry sectors with
higher wage occupations.
SEC. 3. DEFINITIONS.
In this Act:
(1) Affected employee.--The term ``affected employee''
means an employee affected by a violation of a minimum wage or
overtime hours requirement of the Fair Labor Standards Act of
1938 (29 U.S.C. 201 et seq.), excluding any employee subject to
prevailing wage requirements under the H-1B, H-2B, or H-2A visa
programs, subchapter IV of chapter 31 of title 40, United
States Code (commonly referred to as the ``Davis-Bacon Act''),
or chapter 67 of title 41, United States Code (commonly known
as the ``Service Contract Act'').
(2) Administrator.--The term ``Administrator'' means the
Administrator of the Wage and Hour Division of the Department
of Labor.
(3) Employee.--The term ``employee''--
(A) has the meaning given such term in section 3 of
the Fair Labor Standards Act of 1938 (29 U.S.C. 203);
and
(B) with respect to an employer, includes a former
employee of such employer.
(4) Employer.--The term ``employer'' has the meaning given
such term in section 3 of such Act.
(5) Good faith.--The term ``good faith'' means, with
respect to an employer applying for participation in the
Payroll Audit Independent Determination program established
under section 4, that such employer is not, at the time such
employer submits an application for such program--
(A) under investigation by the Secretary for an
alleged violation of a minimum wage or overtime hours
requirement of the Fair Labor Standards Act of 1938 (29
U.S.C. 201 et seq.); or
(B) subject to a lawsuit related to an alleged
violation of such a requirement.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
(7) Self-audit.--The term ``self-audit'' means an audit
conducted by an employer to resolve inaccuracies by the
employer in the computation of wages and overtime compensation
required under the Fair Labor Standards Act of 1938 within the
statute of limitations described in section 6(a) of the Portal-
to-Portal Act of 1947 (29 U.S.C. 255(a)).
SEC. 4. PAYROLL AUDIT INDEPENDENT DETERMINATION PROGRAM.
(a) Program Establishment.--The Administrator shall establish a
Payroll Audit Independent Determination program (referred to in this
section as the ``program'') to foster collaboration with employers that
inadvertently violate the Fair Labor Standards Act of 1938 (29 U.S.C.
201 et seq.) to voluntarily remedy, within the statute of limitations
described in section 6(a) of the Portal-to-Portal Act of 1947 (29
U.S.C. 255(a)), unpaid minimum wages or overtime compensation owed to
any affected employee under the Fair Labor Standards Act of 1938.
(b) Application Requirements.--
(1) Resources for compliance assistance.--Not later than 30
days after the date of enactment of this Act, the Administrator
shall make available to employers resources for assistance in
complying with the Fair Labor Standards Act of 1938, including
content regarding wage and hour requirements, which shall be
offered online, through printed materials, and through other
outreach activities.
(2) Application.--An employer seeking to participate in the
program shall submit an application to the Administrator that
includes--
(A) materials related to and the results of a self-
audit, including--
(i) an identification of any practice of
such employer identified in a self-audit that
may violate a minimum wage or overtime
compensation requirement of the Fair Labor
Standards Act of 1938; and
(ii) a list of each employee who may be an
affected employee with respect to such
violation, including--
(I) the period of time such
employee would have been affected by
such violation;
(II) payroll records related to
such employee for such period with
information on the hours of work
performed by such employee;
(III) calculations of unpaid
minimum wages or overtime compensation
owed to such employee under the Fair
Labor Standards Act of 1938 with a
description of the methodology of such
calculation and supporting evidence;
and
(IV) contact information for such
employee;
(B) an explanation of the scope of potential
violations of a minimum wage or overtime compensation
requirement of such Act for inclusion in a release of
claims under subsection (d);
(C) an assurance that any practice of such employer
that violates a minimum wage or overtime compensation
requirement of the Fair Labor Standards Act of 1938
that is identified in the self-audit has been corrected
to comply with such Act;
(D) an assurance that such employer has, prior to
submitting such application, reviewed the compliance
assistance resources made available under paragraph (1)
and all program information, terms, and requirements;
(E) an assurance that, on the date of submission of
such application, such employer--
(i) is not involved in any litigation
regarding any practice of such employer that is
identified in the self-audit; and
(ii) has not received any communications
from an employee or a representative of an
employee seeking to litigate or settle claims
related to any such practice; and
(F) an assurance that no employee listed in
subparagraph (A)(ii) is subject to a prevailing wage
requirement under the H-1B, H-2B, or H-2A visa
programs, subchapter IV of chapter 31 of title 40,
United States Code (commonly referred to as the
``Davis-Bacon Act''), or chapter 67 of title 41, United
States Code (commonly known as the ``Service Contract
Act'').
(c) Application Review and Approval.--
(1) Review and amendment.--The Administrator shall review
each application submitted by an employer under subsection
(b)(2). As part of such review, the Administrator shall--
(A) as necessary, consult with such employer
regarding--
(i) the self-audit and supporting materials
submitted in the application; and
(ii) the process for approval of such
application and settlement of unpaid minimum
wages or overtime compensation owed to any
affected employee under the Fair Labor
Standards Act of 1938 (29 U.S.C. 201 et seq.);
(B) inform such employer in a timely manner and
prior to a determination on the approval of the
application if additional information is needed to
assess the unpaid minimum wages or overtime
compensation owed to any affected employee for the
violations of such Act identified in the application
through the self-audit; and
(C) provide such employer an opportunity to amend
such application to revise the scope of the practices
of such employer that violate a minimum wage or
overtime compensation requirement of the Fair Labor
Standards Act of 1938 that are identified in the
application through self-audit, to update the list of
affected employees with respect to the practices at
issue in the self-audit, and to update the calculations
of unpaid minimum wages or overtime compensation owed
to any affected employee as a result of such
violations.
(2) Approval.--
(A) In general.--If the conditions under
subparagraph (B) are satisfied with respect to an
application submitted under subsection (b)(2), the
Administrator shall--
(i) approve the application--
(I) in the case the application has
not been amended under paragraph
(1)(C), not later than 30 days after
such submission; or
(II) in the case the application
has been amended under paragraph
(1)(C), not later than 30 days after
the date of submission of such amended
application; and
(ii) supervise the settlement under
subsection (d), including the payment of any
unpaid minimum wages or overtime compensation
under the Fair Labor Standards Act of 1938 (29
U.S.C. 201 et seq.) required through such
settlement.
(B) Conditions for approval.--An application
submitted under subsection (b)(2) shall be approved
under subparagraph (A) if--
(i) within the scope of the violations
identified by the employer through the
application or an amendment to the application
under paragraph (1)(C), the Administrator
verifies that the self-audit and calculation of
unpaid minimum wages or overtime compensation
owed to any affected employee under the Fair
Labor Standards Act of 1938 submitted in such
application or amendment are accurate; and
(ii) the employer submitting the
application--
(I) is determined to be acting in
good faith regarding violations of the
Fair Labor Standards Act of 1938
identified in such application or
amendment;
(II) has not been found by the
Administrator or any court of law to
have violated a minimum wage or
overtime compensation requirement of
such Act during the 5 years immediately
preceding submission of such
application; and
(III) has not been approved for
participation in the program prior to
the submission of such application,
unless--
(aa) such participation was
for a distinct violation of the
Fair Labor Standards Act of
1938 that the practice
identified in the self-audit
under subsection (b)(2); and
(bb) such employer has
submitted the necessary
materials for the Administrator
to verify that such employer is
not engaging in the practice
addressed by the previous
participation of the employer
in the program.
(d) Settlement.--
(1) In general.--For each employer that submits an
application under subsection (b)(2) that is approved under
subsection (c)(2), the Administrator shall--
(A) provide to the employer a description of the
scope of the potential release of claims for violations
of minimum wage or overtime compensation requirements
of the Fair Labor Standards Act of 1938 (29 U.S.C. 201
et seq.) and a summary of any unpaid minimum wages or
overtime compensation owed to each affected employee
under such Act for such violations; and
(B) issue a release form to each affected employee
of such employer that describes the settlement terms,
which shall include a written explanation of--
(i) the waiver under paragraph (2)(B); and
(ii) the right of the affected employee
receiving the offer for settlement to decline
the offer for settlement and preserve any
private right of action of the employee to
recover any unpaid minimum wages or overtime
compensation owed to the employee under the
Fair Labor Standards Act of 1938 as a result of
such violations.
(2) Acceptance of settlement.--
(A) In general.--An affected employee offered a
settlement through a release form under paragraph
(1)(B) may accept or decline the offer.
(B) Waiver of private right of action.--The
acceptance by an affected employee of an offer of
settlement under subparagraph (A) shall, upon payment
in full of any amounts owed to the employee under the
settlement, constitute a waiver by such employee of any
right such employee may have under section 16 of the
Fair Labor Standards Act of 1938 (29 U.S.C. 216) to a
private right of action to recover unpaid minimum wages
or overtime compensation, including any liquidated
damages, for the violations addressed by the
settlement.
(3) Payment of settlement.--For each affected employee that
accepts a settlement through a release form under paragraph
(1)(B), the employer shall--
(A) pay such employee the full amount of unpaid
minimum wages or overtime compensation owed to such
employee under the Fair Labor Standards Act of 1938 (29
U.S.C. 201 et seq.) for the violations addressed in the
settlement; and
(B) submit proof of payment of such full amount to
the Administrator.
(e) Additional Requirements.--
(1) Denials.--In the case of an application submitted by an
employer under subsection (b)(2) and not approved under
subsection (c)(2), the Administrator may not--
(A) use information submitted in the application in
an investigation against the employer;
(B) use the fact such employer applied to the
program as a basis for any future investigation, except
in a case in which the Administrator has reason to
believe that the health and safety of an employee is at
risk due to an alleged violation related to a
requirement enforced by the Secretary involving child
labor, agricultural worker protections, or housing or
transportation requirements under the H-2A or H-2B visa
programs; or
(C) communicate to any affected employee of such
employer in response to receipt of such application to
notify such employee of the private right of action of
such employee to resolve potential violations of the
Fair Labor Standards Act of 1938 (29 U.S.C. 201 et
seq.), particularly with respect to the wage practices
at issue in the self-audit.
(2) Expansion of scope.--The Administrator may not expand
the scope of the violations to be investigated or settled
through an employer's participation in the program beyond the
violations identified by the employer in the application
submitted by the employer under subsection (b)(2) or the
amended application submitted by the employer under subsection
(c)(1)(C).
(3) No payments required.--The Administrator may not
require any form of payment by an employer to apply, qualify,
or participate in the program.
(4) Exemption from discovery.--Any information submitted in
an application to the program under subsection (b)(2), or an
amendment to such application under subsection (c)(1)(C), may
not be subject to discovery in a Federal or State court
proceeding without the consent of the employer that submitted
the application.
(f) Retaliation.--Section 15(a)(3) of the Fair Labor Standards Act
of 1938 (29 U.S.C. 215(a)(3)) is amended by inserting before the
semicolon the following: ``, or has accepted or declined to accept an
offer for settlement under section 4(d) of the Ensuring Workers Get
PAID Act of 2025''.
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