Ensuring Workers Get PAID Act of 2025
- Bill Number
- H.R. 2299
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Labor and Employment
- Status
- Introduced
- Latest Action
- 2026-03-03: Placed on the Union Calendar, Calendar No. 464.
- Last Updated
- 2026-06-11T23:26:42Z
AI-Generated Summary
Purpose of the Legislation
The Ensuring Workers Get PAID Act of 2025 aims to make permanent and expand a successful pilot program in the Department of Labor (DOL). It establishes the Payroll Audit Independent Determination (PAID) program to encourage employers to voluntarily identify and fix unintentional mistakes in paying minimum wages or overtime under the Fair Labor Standards Act (FLSA), a federal law that sets basic labor standards like minimum pay and extra pay for overtime hours. The goal is to recover owed wages faster for workers while reducing the burden on DOL enforcement.
Key Provisions
- Findings Section: Highlights the success of the 2018-2019 PAID pilot, which recovered over $4 million in back wages for 7,429 workers in just 74 cases. It notes that self-audits (employer-led reviews of their own payroll) were more efficient than traditional DOL investigations, paying out higher average back wages per case and per hour spent, while reaching more workers and smaller or government employers.
- Definitions:
- Affected employee: A current or former worker owed minimum wages or overtime under FLSA, excluding those under special wage rules (e.g., certain visa programs or government contracts like the Davis-Bacon Act, which sets prevailing wages for public works).
- Good faith: Employers not currently under DOL investigation or facing lawsuits for similar violations.
- Self-audit: An employer's internal review to find and calculate FLSA wage errors within the legal time limit (usually 2-3 years) for claims.
- Program Establishment: DOL's Wage and Hour Division Administrator must create the PAID program. Employers voluntarily apply to fix unintentional FLSA violations by submitting self-audit results, including:
- Identified errors, affected workers' details (e.g., time periods, payroll records, owed amounts, contact info).
- Proof that violations are corrected and no lawsuits or disputes exist.
- Assurance that applicants reviewed DOL compliance resources.
- Application Review and Approval:
- DOL provides online/print/outreach resources on FLSA rules within 30 days of the law's enactment.
- Administrator reviews applications (approves within 30 days if accurate), consults employers, and allows amendments.
- Approval requires: Accurate self-audit calculations, good faith, no FLSA violations in the past 5 years, and no prior program use for the same issue.
- If approved, DOL supervises payments.
- Settlement Process:
- DOL issues release forms to affected workers explaining the owed amounts and their rights.
- Workers can accept (waive their right to sue privately under FLSA section 16 for those specific violations upon full payment) or decline (keep their right to sue or file a DOL claim).
- Employers pay full owed wages and submit proof to DOL.
- Additional Requirements:
- Denied applications cannot be used against employers in investigations (except for serious issues like child labor risks), and DOL cannot notify workers about potential claims based on the application.
- DOL cannot expand investigations beyond the self-identified violations.
- No fees to apply or participate.
- Application info is protected from court discovery without employer consent.
- Anti-Retaliation Amendment: Updates FLSA to prohibit employers from firing or punishing workers for accepting or declining a PAID settlement offer.
Significant Changes to Existing Law
- Permanent Program: Codifies the temporary 2018 PAID pilot as an ongoing DOL initiative, building on DOL's existing self-audit practices.
- Protections for Employers: Introduces "safe harbor" rules—denied or withdrawn applications cannot trigger broader DOL probes or lawsuits, and info is shielded from courts. This is new compared to standard FLSA enforcement, where self-disclosures might lead to full investigations.
- Worker Rights Update: Adds explicit FLSA protection against retaliation for program participation; previously, such actions might have been covered indirectly but not specified.
- Limits on DOL Actions: Restricts DOL from expanding violation scopes or using program data punitively, shifting from reactive enforcement to proactive collaboration.
Potential Impacts
- On Government Agencies: DOL's Wage and Hour Division could handle more cases efficiently (e.g., pilot showed 19 hours per case vs. 41 for traditional probes), recovering back wages faster with fewer resources. This may reduce court backlogs and enforcement hours overall.
- On Citizens (Workers and Employers): Workers gain quicker access to owed wages without needing to sue, though they retain lawsuit options. Employers, especially small or government ones, face less fear of penalties for honest mistakes, encouraging voluntary fixes. Excludes certain visa or contract workers to avoid overlapping rules.
- On International Relations: No direct impact; the law focuses on domestic private-sector and government employees under FLSA.
Main Stakeholders Affected
- Employers: Primarily those with unintentional FLSA wage errors (e.g., small businesses, government entities, higher-wage sectors); they benefit from streamlined compliance but must meet good-faith criteria.
- Employees: Current/former workers owed minimum or overtime pay; they receive settlement offers but can opt out to pursue private lawsuits.
- Department of Labor (Wage and Hour Division): Oversees the program, provides resources, and supervises settlements, shifting some workload from investigations to reviews.
- Courts and Litigators: Reduced FLSA lawsuits due to settlements and waivers, potentially lowering caseloads.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: Strengthens voluntary compliance under FLSA by creating a protected self-audit pathway, potentially reducing litigation but raising concerns about limiting worker awareness of rights (e.g., DOL cannot notify workers of denied applications). The discovery exemption shields employer data, which could complicate private suits if info is withheld. Builds on the Portal-to-Portal Act's time limits for wage claims.
- Constitutional Implications: None apparent; aligns with Congress's authority to regulate interstate commerce and labor standards under the Commerce Clause. Does not infringe on free speech, due process, or equal protection.
- Political Implications: Promotes a collaborative, efficiency-focused approach to labor enforcement, which may appeal to business interests by reducing regulatory burdens while ensuring worker protections. Could face debate over balancing employer incentives with robust enforcement against willful violations.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (5)
Rep. Hamadeh, Abraham [R-AZ-8], Rep. Stefanik, Elise M. [R-NY-21], Rep. Messmer, Mark B. [R-IN-8], Rep. Tenney, Claudia [R-NY-24], Rep. Fine, Randy [R-FL-6]
Recent Actions
- 2026-03-03: Placed on the Union Calendar, Calendar No. 464.
- 2026-03-03: Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-539.
- 2026-03-03: Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-539.
- 2025-11-20: Ordered to be Reported (Amended) by the Yeas and Nays: 20 - 15.
- 2025-11-20: Committee Consideration and Mark-up Session Held
- 2025-03-24: Referred to the House Committee on Education and Workforce.
- 2025-03-24: Introduced in House
- 2025-03-24: Introduced in House
Bill Versions
- Ensuring Workers Get PAID Act of 2025 — issued 2025-03-24 — PDF (18 pages)
- Ensuring Workers Get PAID Act of 2025 — issued 2026-03-03 — PDF (20 pages)