119-hr2299

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2299 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 2299

To establish the Payroll Audit Independent Determination program in the 
 Department of Labor.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 March 24, 2025

 Mr. Grothman introduced the following bill; which was referred to the 
 Committee on Education and Workforce

_______________________________________________________________________

 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 than 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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