Think “FMLA audit” only involves Government investigations? Think again. With the Department of Labor’s (DOL) recently expanded self-audit program, business owners now have a strategic opportunity to proactively address potential Family and Medical Leave Act violations, reduce liability, and demonstrate a culture of compliance.

According to the DOL, under PAID, employers are encouraged to conduct audits and, if they discover FLSA or FMLA violations, to self-report those violations. Employers may then work in good faith with WHD to correct their mistakes and to quickly provide 100% of the back wages due or other remedies to their affected employees.

What’s Changing? The Return—and Expansion—of the PAID Program

• In July 2025, the DOL relaunched the Payroll Audit Independent Determination (PAID) program, which now includes FMLA (Family and Medical Leave Act) violations—something never offered before.

• Originally introduced in 2018 for FLSA (Fair Labor Standards Act) infractions, it was suspended in early 2021 but restored in mid-2025 with expanded scope and updated safeguards.

How the PAID Process Works for FMLA

Preparation & Self-Audit

Start by building an overall understanding of FMLA requirements and the most common violation types—such as mishandling employee eligibility, miscalculating leave entitlements, or failing to restore employees to their positions after leave. From there, tap into trusted compliance resources and guides to deepen your knowledge. The Department of Labor offers toolkits, notices, training checklists, and FAQs that cover the basics. For a more comprehensive approach, resources like Asure’s online HR Compliance Library provide in-depth guidance and practical tools tailored to small and midsize businesses.

Self-Identification of Issues

You’ll need to systematically document any suspected violations. Include detailed back-pay calculations and proof of compliance efforts.

• Which employees were affected?

• Over what timeframes?

• What remedies are appropriate (e.g., restoration of benefits, leave reinstatement)?

Submission to WHD

Submit your findings plus required certifications to the Wage and Hour Division (WHD). These attest to:

• Your coverage under FMLA/FLSA.

• That no investigations or litigation are ongoing.

• You have not been penalized in the past three years.

WHD Review & Resolution

WHD evaluates your submission and issues:

• A summary of any unpaid wages or other remedies due to employees.

• Settlement documentation, including releases from future liability (limited to the audit’s scope and timeframe).

• A requirement to pay or remedy within 15 days, with proof submitted to WHD.

Why Consider Participating?

• Avoid Litigation & Penalties: Participants typically avoid liquidated damages and civil money penalties under FLSA—and receive a supervised settlement under FMLA.

• Proactive Compliance Boost: The program fosters internal accountability and strengthens trust—both with employees and regulators.

• Risk Mitigation: Address small issues before they become costly disputes or government investigations.

Key Caveats & Limitations

• Eligibility Restrictions: You can’t participate if under investigation, in litigation, or have recent findings in the past three years.

• Scope Limitation: Certifications and releases only apply to identified issues and timeframes; state law claims may still apply.

• Upfront Identification Required: There’s no anonymity—you must disclose your identity when applying.

• WHD Discretion: Participation and supervised resolution are at WHD’s discretion—they may reject participation or require further information.

Practical Tips for Business Owners

To make the most of the PAID program and avoid trouble during an FMLA audit, business owners should:

• Review FMLA requirements and common violation areas (like eligibility errors, leave miscalculations, or reinstatement failures). Use the DOL’s toolkits and FAQs for a solid baseline, and lean on deeper resources such as Asure’s online HR Compliance Library for more detailed guidance.

• Assess leave records to identify gaps in eligibility handling, restoration procedures, or documentation.

• Consult Counsel or HR Experts before submitting—especially since remedies may involve more than back pay (e.g., reinstating an employee). Partnering with compliance specialists, such as Asure’s HR Compliance Services team, can help ensure accuracy and limit risk.

• Apply if qualified, with thorough documentation, and wait for WHD’s acceptance and remediation plan.

• Execute & Follow Up by completing payments or leave restorations within 15 days, preserving documentation, and strengthening policies to prevent future violations.

The revived PAID program offers a rare and powerful compliance tool: the chance to self-audit, self-correct, and move forward with reduced legal exposure. But navigating the complexities of FMLA and FLSA rules, calculating remedies, and preparing documentation can be overwhelming for many businesses. That’s where engaging HR experts—such as Asure’s HR Compliance Services team—can make the difference. With professional guidance, you can confidently address compliance gaps, strengthen policies, and ensure your business not only avoids penalties but also builds a culture of trust and accountability.