To participate in PAID, you must be (1) covered by the FLSA and/or the FMLA, (2) interested in proactively resolving potential minimum wage, overtime, tip retention and/or FMLA claims, and (3) willing to commit to future compliance under the FLSA and/or the FMLA.
Coverage Under FLSA Does your organization have two or more employees?
If yes, go to the next question.
If no, your employee is not covered under the FLSA by enterprise coverage but still may be covered under individual coverage (see below).
Is your organization:
A Federal, state, or local government agency;
A hospital, or an institution primarily engaged in the care of the sick, the aged, or the mentally ill or developmentally disabled who live on the premises (it does not matter if the hospital or institution is public or private or is operated for profit or not-for-profit);
A pre-school, elementary or secondary school, institution of higher learning (e.g., college), or a school for mentally or physically handicapped or gifted children (it does not matter if the school or institution is public or private or operated for profit or not for profit); or
A company/organization with annual dollar volume of sales or receipts in the amount of $500,000 or more?
If yes to any one of the above, your employees are covered under the FLSA by enterprise coverage.
If no, your employees are not covered under the FLSA by enterprise coverage but still may be covered under individual coverage.
Do your employees:
Engage in interstate commerce;
Produce goods for interstate commerce and/or provide services closely related and directly essential to the production of goods for interstate commerce; or
Provide domestic service?
If yes to any of the above, your employees are covered under the FLSA by individual coverage.
If no, your employees are not covered under the FLSA by individual coverage.
Additional information on FLSA Coverage:
Fact Sheet #14: Coverage Under the Fair Labor Standards Act (FLSA)
Coverage under the FMLA Is your organization:
A private-sector employer who employs 50 or more employees in 20 or more workweeks in either the current calendar year or previous calendar year?
A Federal, state, or local government agency, regardless of the number of employees?
A local educational agency (including public school boards, public elementary and secondary schools, and private elementary and secondary schools, regardless of the number of employees)?
If not, your business is not covered by the FMLA.
Additional information on FMLA Coverage:
Fact Sheet #28: The Family and Medical Leave Act
If you have any questions about PAID, coverage or general compliance concerns, you can call WHD confidentially at 1-866-4USWAGE.
FLSA Employer Eligibility for PAID When contacting WHD about potentially participating in PAID to resolve FLSA minimum wage, overtime, or tip retention violations, be prepared to certify the following as true:
You are an employer covered by the FLSA.
The employees included in your proposed PAID self-audit are not subject to prevailing wage requirements under the H-1B, H-2B, or H-2A Visa Programs, the Davis Bacon Act or Related Acts, or the Service Contract Act.
Neither WHD nor a court of law has found within the last three years that you have violated the FLSA minimum wage and/or overtime requirements.
You are not currently a party to any litigation (e.g., private, with WHD, or with a state enforcement agency) asserting that the compensation practices at issue in this proposed PAID self-audit violate FLSA minimum wage and/or overtime requirements.
To the best of your knowledge, WHD is not currently investigating the compensation practices at issue in this proposed PAID self-audit.
You have informed WHD of any recent complaints of which you are aware by your employees or their representatives to you or your representatives, to WHD, or to a state wage enforcement agency asserting that the compensation practices at issue in this proposed PAID self-audit violate FLSA minimum wage and /or overtime requirements.
You have not previously participated in PAID within the last three years to resolve potential FLSA minimum wage or overtime violations.
You acknowledge that you have a continuing duty, during the audit process, to update WHD on any changes to the above information and/or representations.
You acknowledge that participating in the PAID program does not cut off employee rights under other state or local laws.
WHD maintains its discretion to determine whether to accept employers into PAID. Potential participants are examined on a case-by-case basis.
FMLA Employer Eligibility
