Department of Labor Expands Self-Audit Program

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July 24, 2025

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  • The U.S. Department of Labor has expanded self-audit programs across several agencies, allowing employers to proactively identify and correct labor law violations without triggering formal investigations.

Discussion

The U.S. Department of Labor (DOL) has significantly expanded its self-audit programs across six federal agencies, aiming to foster a more collaborative approach to labor law compliance. These initiatives allow employers, unions, and pension plans to proactively assess and correct potential violations without facing formal investigations or litigation. As described, the programs are designed to build a culture of trust and transparency, offering resources and guidance to help regulated entities navigate complex legal requirements.

 

For employers, this shift presents both opportunities and responsibilities. Agencies like OSHA are expanding their Voluntary Protection Programs, enabling businesses to conduct regular safety self-evaluations and avoid routine inspections. The Wage and Hour Division has revived the Payroll Audit Independent Determination (PAID) program, which lets employers self-report and resolve wage, overtime, and leave violations under the Fair Labor Standards Act (FLSA) and the Family and Medical Leave Act (FMLA). However, participation is limited to employers with clean compliance histories and no ongoing investigations.

 

Additionally, the Employee Benefits Security Administration (EBSA) offers programs that allow plan administrators to correct violations of ERISA while reducing penalties, and the Veterans Employment and Training Service (VETS) has launched the SALUTE program to help employers ensure compliance with USERRA, protecting the employment rights of service members.

 

Despite the benefits, employers must remain cautious. Participation in these programs requires transparency and timely corrective action, such as paying back wages within 15 days under the PAID program. Additionally, self-audits do not override state or local laws, meaning disclosures to federal agencies could still expose businesses to legal risks in jurisdictions with longer statutes of limitations. Employers are encouraged to work closely with their legal counsel to evaluate any implications before engaging in the reporting programs.

 

Action Items

  1. Review the DOL’s self-audit tools, guidance documents, and program details.
  2. Review internal audit protocols.
  3. Consult with legal counsel before engaging in proactive reporting.

 

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2025 ManagEase