Federal Legislation
Congress Codifies DOL PAID Program
March 03, 2026
Congress has enacted the Ensuring Workers Get PAID Act of 2025, which formally codifies the Department of Labor's Payroll Audit Independent Determination (PAID) program. This legislation allows employers to self-audit and voluntarily correct wage violations under the Fair Labor Standards Act without facing penalties, expediting back wage payments to employees and reducing traditional enforcement actions by the Wage and Hour Division. Procurement professionals and contractors working with federal agencies should be aware that this change may influence labor compliance monitoring and contractor wage audit processes.
- The Department of Labor's PAID program is now a statutory framework, increasing its permanence and predictability for employers and contractors.
- Contractors should evaluate their payroll and wage compliance procedures to leverage voluntary self-audit opportunities and mitigate enforcement risks.
- Federal agencies may adjust contract oversight and compliance requirements in alignment with the new statutory provisions.
- This act may reduce administrative burdens related to wage violation enforcement, potentially impacting contract performance evaluations and labor cost management.
The acceptance by an affected employee of an offer of settlement 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 to a private right of action to recover unpaid minimum wages or overtime compensation.
— Ensuring Workers Get PAID Act of 2025
Agencies
Department of Labor, Wage and Hour Division, Committee on Education and Workforce, Subcommittee on Workforce Protections, Congress
Locations
Sources
- H. Rept. 119-539 - ENSURING WORKERS GET PAID ACT OF 2025 · congress · Mar 03