H.R.2299 - Ensuring Workers Get PAID Act of 2025 (119th Congress)
Summary
H.R.2299, the "Ensuring Workers Get PAID Act of 2025," aims to establish the Payroll Audit Independent Determination (PAID) program within the Department of Labor. This program encourages employers to voluntarily self-audit for Fair Labor Standards Act (FLSA) violations and rectify unpaid wages and overtime compensation. The bill outlines application requirements, review processes, and settlement procedures, including waivers of private rights of action for employees who accept settlements.
Expected Effects
The bill seeks to streamline the process for employers to correct wage and overtime violations, potentially leading to quicker remediation for affected employees. It also aims to reduce litigation by encouraging settlements. The establishment of the PAID program could lead to more efficient use of Department of Labor resources by focusing on cases where employers are not proactively addressing violations.
Potential Benefits
- Faster Wage Recovery: Employees may receive unpaid wages more quickly through self-audits and settlements.
- Reduced Litigation: Encourages resolution through settlement, potentially avoiding costly and lengthy court battles.
- Employer Compliance: Promotes employer compliance with the Fair Labor Standards Act through education and self-auditing.
- Targeted Enforcement: Allows the Department of Labor to focus resources on employers who are not proactively addressing violations.
- Clarity for Employers: Provides a structured process for employers to identify and correct wage and hour violations.
Potential Disadvantages
- Potential for Coercion: Employees may feel pressured to accept settlements that are less than what they could recover through litigation.
- Limited Scope: The program focuses on unintentional violations, potentially excluding more serious or intentional violations.
- Reduced Deterrence: The voluntary nature of the program may reduce the deterrent effect of traditional enforcement actions.
- Administrative Burden: Establishing and maintaining the PAID program will require resources from the Department of Labor.
- Exclusion of Certain Workers: The definition of 'affected employee' excludes those subject to prevailing wage requirements under specific visa programs and acts, potentially leaving them without this avenue for recourse.
Constitutional Alignment
The bill aligns with Congress's power to regulate commerce (Article I, Section 8) by addressing fair labor standards. It does not appear to infringe upon individual liberties or rights protected by the Constitution. The bill establishes a voluntary program and does not mandate participation, thus respecting the rights of both employers and employees.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).