WASHINGTON, D. C. – Today, Attorney General Karl A. Racine vowed to protect workers in the District from wage theft in the wake of a newly announced United States Department of Labor (DOL) program that appears to provide amnesty for employers who commit wage theft. Attorney General Racine and his counterparts from 10 states sent a letter to DOL officials expressing concerns with the department’s new Payroll Audit Independent Determination (PAID) Program in its Wage and Hour Division.
The PAID Program will allow employers who voluntarily report violations of wage and hour laws to simply pay back the wages owed while avoiding prosecution and penalties under the federal Fair Labor Standards Act (FLSA). The program requires affected employees to waive some or all of their rights under FLSA in order to receive back pay that their employers unlawfully withheld.
“The Trump Administration’s new PAID Program gives a free pass to employers who cheat their employees out of their hard-earned wages,” Attorney General Racine said. “Workers must be paid the wages they earn, and I want to assure District workers that I will stand up for their rights and prosecute abusive employers to the fullest extent of District law, regardless of whether their bosses participate in the PAID Program.”
The letter, joined by 10 states in addition to the District and led by New York Attorney General Eric Schneiderman, said the new program eliminates much of the federal deterrents for wage theft.
“The PAID Program releases employers from the obligation to pay liquidated damages, interest, or penalties. This is troubling on all counts. First, failure to include interest means that employers who commit wage theft can enjoy the benefits of a compulsory, interest-free loan from their employees – including from low-wage workers who rely on their hard-earned wages to pay for rent, groceries, and childcare. Second, failure to include liquidated damages removes an essential deterrent for employers not to break the law. Third, federal law provides that willful or repeated violations warrant the imposition of civil monetary penalties, but this Program leaves penalties out of the equation,” the letter said.
The attorneys general also expressed concern in the letter that the PAID Program might actually hinder state enforcement of wage laws. “Additionally, it appears that the PAID Program will not require employers to pay employees at any applicable higher state or local minimum wage or overtime wage rates, or to pay wages owed during longer state statute of limitations periods,” the attorneys general write. Employers may offer employees separate agreements to settle state claims, but PAID will not review these agreements. As a result, the letter notes, “there is a significant danger that employers will abuse the PAID Program to pressure employees into overbroad waivers of their rights under state labor laws,” or that employers will require employees to sign state-law releases in order to receive their wages under the PAID Program.
In addition to the District and New York, attorneys general from California, Connecticut, Delaware, Illinois, Maryland, Massachusetts, New Jersey, Pennsylvania, and Washington joined the letter to DOL leaders.
OAG Resources for Workers
The Office of the Attorney General (OAG) has resources for workers to help protect themselves against unscrupulous employers. Workers can access the OAG resources in both English and Spanish, including comprehensive information about the District’s wage and hour laws and information about where workers can get help if their rights are being violated. OAG is also providing free wage and hour log books, where workers can keep track of their wages and hours and help ensure they actually receive the pay they earn. Workers can print the log book here.
Workers who have experienced wage theft or other wage violations can contact the Office of the Attorney General’s Housing and Community Justice Section by phone at (202) 442-9854.