Federal program draws ire of state attorneys general

Pittsburgh Post-Gazette

Employees might be receiving back wages a bit faster through an initiative being tested by the U.S. Department of Labor that allows employers to avoid extra penalties if they discover an accidental labor law violation and voluntarily disclose it.

The catch? Employees can opt out of the payments and pursue their claims in court. And state attorneys general are not playing along with the new federal initiative.

The Payroll Audit Independent Determination program — now in the fifth month of a halfyear trial period — attempts to strike a bargain between employees who were underpaid and employers who inadvertently violated the law.

There’s a lot of money involved. Federal data show that about $270 million in back wages was recovered from employers across the country during 2017. That money was paid to more than 240,000 individual workers.

For employees, according to a DOL news release, the new program offers a faster way to recover back wages, while employers who come forward can avoid additional damages and penalties.

The program covers violations of the Fair Labor Standards Act, which, among other provisions, establishes the federal minimum wage of $7.25 per hour and requires that work beyond 40 hours per week be paid