I 
117TH CONGRESS 
1ST SESSION H. R. 5743 
To establish the Payroll Audit Independent Determination program in the 
Department of Labor. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 26, 2021 
Ms. STEFANIK (for herself, Mrs. WALORSKI, Mr. GROTHMAN, and Mrs. MIL-
LER-MEEKS) introduced the following bill; which was referred to the 
Committee on Education and Labor 
A BILL 
To establish the Payroll Audit Independent Determination 
program in the Department of Labor. 
Be it enacted by the Senate and House of Representa-
tives 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 2021’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) In 2018, the Department of Labor launched 
the nationwide Payroll Audit Independent Deter-
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mination 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, es-
tablished the PAID pilot program to complement en-
forcement and compliance assistance tools under-
taken by the Wage and Hour Division of the De-
partment 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 Represent-
atives 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 estab-
lishing minimum wage, overtime pay, recordkeeping, 
and youth-employment requirements affecting em-
ployees in the private sector and in Federal, State, 
and local governments. 
(5) The PAID pilot program yielded positive re-
sults for employers and employees. Between April 1, 
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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 pro-
gram cases. 
(6) Self-audits through the PAID pilot program 
by employers returned more back wages to employ-
ees 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 en-
forcement 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 em-
ployees received back wages in each PAID pilot 
program case than in investigations conducted 
using traditional methods; 
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(D) self-audits through the PAID pilot 
program averaged 19 hours per case as com-
pared 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 establish-
ments and industry sectors with higher wage 
occupations. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) AFFECTED
EMPLOYEE.—The term ‘‘af-
fected employee’’ means an employee affected by a 
violation of a minimum wage or overtime hours re-
quirement 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 (com-
monly known as the ‘‘Service Contract Act’’). 
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(2) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ 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 par-
ticipation in the Payroll Audit Independent Deter-
mination program established under section 4, that 
such employer is not, at the time such employer sub-
mits 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 al-
leged violation of such a requirement. 
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(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 inac-
curacies 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-Por-
tal Act of 1947, unpaid minimum wages or overtime com-
pensation owed to any affected employee under the Fair 
Labor Standards Act of 1938. 
(b) APPLICATION REQUIREMENTS.— 
(1) RESOURCES
FOR
COMPLIANCE
ASSIST-
ANCE.—Not later than 30 days after the date of en-
actment of this Act, the Administrator shall make 
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available to employers resources for assistance in 
complying with the Fair Labor Standards Act of 
1938, including content regarding wage and hour re-
quirements, which shall be offered online, through 
printed materials, and through other outreach activi-
ties. 
(2) APPLICATION.—An employer seeking to 
participate in the program shall submit an applica-
tion 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 over-
time 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 em-
ployee would be affected by such vio-
lation; 
(II) payroll records related to 
such employee for such period with in-
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formation on the hours of work per-
formed by such employee; 
(III) calculations of unpaid min-
imum 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 poten-
tial violations of a minimum wage or overtime 
hours 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 over-
time hours 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 avail-
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able under paragraph (1) and all program in-
formation, terms, and requirements; 
(E) an assurance that, on the date of sub-
mission of such application, such employer— 
(i) is not involved in any litigation re-
garding any practice of such employer that 
is identified in the self-audit; and 
(ii) has not received any communica-
tions 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 pre-
vailing 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 Con-
tract Act’’). 
(c) APPLICATION REVIEW AND APPROVAL.— 
(1) REVIEW AND AMENDMENT.—The Adminis-
trator shall review each application submitted by an 
employer under subsection (b)(2). As part of such 
review, the Administrator shall— 
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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 vio-
lations. 
(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 para-
graph (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 amend-
ed application; and 
(ii) supervise the settlement under 
subsection (d), including the payment of 
any unpaid minimum wages or overtime 
compensation under the Fair Labor Stand-
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ards Act of 1938 required through such 
settlement. 
(B) CONDITIONS FOR APPROVAL.—An ap-
plication 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 ap-
plication or an amendment to the applica-
tion under paragraph (1)(C), the Adminis-
trator verifies that the self-audit and cal-
culation of unpaid minimum wages or over-
time 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 appli-
cation— 
(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 
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overtime hours requirement of such 
Act during the 5 years immediately 
preceding submission of such applica-
tion; 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 sub-
mitted the necessary materials 
for the Administrator to verify 
that such employer is not engag-
ing in the practice addressed by 
the previous participation of the 
employer in the program. 
(d) SETTLEMENT.— 
(1) IN GENERAL.—For each employer that sub-
mits an application under subsection (b)(2) that is 
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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 
hours requirements of the Fair Labor Stand-
ards 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 em-
ployee under the Fair Labor Standards 
Act of 1938 as a result of such violations. 
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(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 AC-
TION.—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, con-
stitute 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 re-
cover unpaid minimum wages or unpaid over-
time compensation, including any liquidated 
damages, for the violations addressed by the 
settlement. 
(3) PAYMENT OF SETTLEMENT.—For each af-
fected 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 compensa-
tion owed to such employee under the Fair 
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Labor Standards Act of 1938 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 Ad-
ministrator may not— 
(A) use information submitted in the appli-
cation in an investigation against the employer; 
(B) use the fact such employer applied to 
the program as a basis for any future investiga-
tion, except in a case in which the Adminis-
trator has reason to believe that the health and 
safety of an employee is at risk due to an al-
leged violation related to a requirement en-
forced 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 pri-
vate right of action of such employee to resolve 
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