This bill provides statutory authority for the Payroll Audit Independent Determination program, which is administered by the Department of Labor and allows employers to self-report federal minimum wage and overtime compensation violations as an alternative to litigation.
Employers may apply to the program by submitting certain information from a self-audit that includes calculations of any unpaid minimum or overtime wages. Labor must verify the calculations and, if the application is approved, supervise a settlement with affected employees that provides payment of any unpaid wages. Employees who accept a settlement under the program waive their private right of action to recover the unpaid wages provided under the settlement.