(Washington, D.C.) – Congressman Glenn Grothman (R-WI) has introduced the Ensuring Workers Get PAID Act, legislation that permanently reinstates the Payroll Audit Independent Determination (PAID) program, which allows businesses to quickly resolve wage discrepancies for workers. Initially launched under the Trump Administration in 2018, the PAID program returned four times the amount of back wages to employees, when compared to traditional investigations. This bill is supported by the National Retail Federation, HR Policy Association, U.S. Chamber of Commerce, National Federation of Independent Business, International Franchise Association, and Institute for the American Worker.
“Our priority must be to ensure American workers quickly and fairly receive the wages they rightfully earned,” said Grothman. “The PAID program was an objective success and returned money to workers much faster than traditional methods, benefiting both employees and businesses. By permanently restoring this program, we provide employers with an efficient way to fix mistakes and ensure workers receive their rightful wages without unnecessary litigation or penalties. This is especially helpful for small businesses, who can’t afford litigation because many are already operating on razor thin margins. I am proud to introduce this commonsense legislation to safeguard American workers and businesses alike.”
“Even the best-intentioned employer can run afoul of the countless federal, state, and local wage and hour regulations. Codification of the PAID program would allow employers to rectify such mistakes quickly, so that employees can justly get their back wages without the involvement of the laborious federal court system process. NRF is proud to support this legislation,” said Edwin Egee, Vice President, Government Affairs and Workforce Development, National Retail Federation.
“HR Policy Association supports the Ensuring Workers Get PAID Act, a practical and balanced solution that benefits both workers and employers by reinstating the PAID program. This program allowed employers to proactively correct inadvertent overtime and minimum wage violations under the FLSA, ensuring employees received back wages promptly while reducing costly and time-consuming litigation. By promoting accountability, efficiency, and fairness, this legislation offers a common-sense approach to resolving wage issues, and we strongly urge lawmakers to reintroduce and support this critical measure,” said Chatrane Birbal, Vice President, Policy and Government Relations, HR Policy Association.
“Small businesses overwhelmingly support the PAID program,” said Dylan Rosnick, NFIB Principal of Federal Government Relations. “Unlike larger businesses, many small businesses do not have dedicated compliance officers or human resources departments, leaving the business owner responsible for handling payroll in-house. The PAID program was successful in helping small business owners correct unintended errors before incurring costly penalties. As Congress looks to deliver pro-growth economic and regulatory policies, reinstating the PAID program would help honest small business owners correct minor violations and comply with the law.”
