New "Self Audit" Service Available to Employers

Wednesday, 23 January 2019

The Tennessee Department of Labor and Workforce Development encourages Tennessee employers to take part in the Payment Audit Independent Determination program or PAID. This United States Department of Labor initiative gives employers the opportunity to avoid costly fines for wage and overtime violations.

PAID is a new nationwide program that allows employers to self-audit their compensation practices and, if they discover overtime or minimum wage violations, to self-report those violations.

If an employer discovers issues during an audit, they can then work in good faith with Department of Labor’s Wage and Hour Division to correct their mistakes and to quickly provide 100 percent of the back wages due to their affected employees.

Kim Jefferson, Assistant Commissioner for the Tennessee Department of Labor said the following,  “The PAID program provides Tennessee employers the opportunity to fix these issues before they become major problems. PAID allows employees to receive wages owed to them in a timely manner and it can save employers from paying costly fines.”

The program’s primary objectives are to quickly resolve wage violation claims without litigation, to improve employers’ compliance with overtime and minimum wage obligations, and to ensure more employees receive the back wages they are owed, faster.




Employers must pay all back wages due by the end of the next full pay period after receiving the summary of unpaid wages, and provide proof of payment to the Wage and Hour Division.

To be eligible to participate in PAID an employer must be covered by the Fair Labor Standards Act.  Employees included in the self-audit cannot be subject to prevailing wage requirements.

The Tennessee Dept. of Labor encourages all eligible Tennessee employers to visit the United States Dept. Of Labor website to learn more about this program.