U.S. Labor Department Recovers Over $259 Million in Back Wages in Fiscal Year 2025

The Wage and Hour Division’s back‑wage recoveries are driven mainly by violations of the Fair Labor Standards Act (FLSA), especially:

• Unpaid or underpaid overtime – not paying at least 1.5× the regular rate after 40 hours in a workweek, or miscalculating overtime (this accounts for the largest share of FLSA back wages each year).
• Minimum wage violations – paying below the federal minimum wage after factoring in all hours worked and any unlawful deductions.
• Related practices that cause those violations, such as:
  • Misclassifying employees as “exempt” from overtime or as independent contractors.
  • Not counting all hours worked (off‑the‑clock work, pre‑/post‑shift work).
  • Improper use of the tip credit or keeping employees’ tips.

DOL data for FY 2025 show that overtime and minimum‑wage violations together make up the vast majority of FLSA back wages recovered, with additional amounts from tip‑related and retaliation violations.

The Payroll Audit Independent Determination (PAID) program is a voluntary process that lets employers self‑report and fix certain federal wage and hour and FMLA problems under Wage and Hour Division (WHD) supervision:

1. Employer self‑audit

   • Employer reviews DOL compliance materials, then audits its own pay and/or leave practices.
   • Identifies potential FLSA minimum wage, overtime, or tip‑retention violations and/or certain FMLA leave violations over the last two years, which employees were affected, and calculates the back wages or other remedies owed.

2. Report to WHD

   • Employer contacts WHD, submits its findings, calculations, records, and a description of the issues.
   • Employer certifies it meets eligibility rules (for example, no current WHD investigation or lawsuit on those same issues, and no recent similar violations found by WHD or a court).

3. WHD review and terms

   • WHD reviews the submission, may request more information, and decides whether to accept the employer into PAID.
   • If accepted, WHD issues a summary of unpaid wages/other remedies and provides forms for employees that include a limited release of claims covering only the identified violations.

4. Payment and employee choice

   • Employer must pay 100% of the back wages (and implement any FMLA remedies) within 15 days and send proof to WHD.
   • Employees can choose to accept or decline payment; the employer cannot retaliate against those who decline.
   • For covered federal claims, accepting payment through PAID generally resolves those specific violations, but workers may still have rights under state/local laws or other federal statutes.

In practice, PAID is meant to get money or leave fixes to employees faster, while employers avoid litigation and commit to future compliance, under WHD oversight.

The Wage and Hour Division’s updated compliance assistance hub and toolkits bring together practical “how‑to” resources to help employers and workers understand and follow federal wage and hour laws. They typically include:

• Central hub (online portal)

  • Easy navigation to materials on the Fair Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA), child labor, government contracts, misclassification, and more.
  • Short compliance videos (e.g., FLSA basics) and a YouTube FMLA series.
  • Links to fact sheets, e‑laws advisors, forms, posters, and contact options.

• Compliance Assistance Toolkits (industry‑ and law‑specific)

  • At least 13 toolkits covering topics such as FLSA, FMLA, youth employment, construction, agriculture, restaurants/food service, hotels, and other industries.
  • Plain‑language explanations of legal requirements (minimum wage, overtime, recordkeeping, youth‑labor rules, FMLA leave rules, etc.).
  • Checklists, examples, FAQs, and links to forms and posters that meet federal notice requirements.
  • Materials often available in English and Spanish.

These tools are designed so non‑lawyers can quickly see what the law requires and how to comply in their particular industry.

Workers can use the Workers Owed Wages (WOW) search tool to see if the Wage and Hour Division is holding back wages for them from a past investigation:

1. Go to the WOW webpage.
2. In the search field, enter the name of the employer (or a keyword) where you think you were underpaid, then run the search.
3. If your employer appears with an open case, follow the instructions on the page: typically, you contact WHD (online form, phone, or local office) and provide identifying information so they can confirm you are one of the workers owed money.
4. WHD holds recovered back wages for up to three years; if you are confirmed and funds are available, WHD will arrange payment (usually by check).

If your employer is not listed but you believe you are still owed wages, you can file a complaint separately with WHD.

The Fair Labor Standards Act (FLSA) and the Family and Medical Leave Act (FMLA) protect workers in different but complementary ways:

Fair Labor Standards Act (FLSA)

• Sets the federal minimum wage (currently $7.25/hour for covered, non‑exempt workers).
• Requires overtime pay of at least 1.5× the regular rate for hours over 40 in a workweek for non‑exempt employees.
• Imposes recordkeeping requirements on employers (accurate records of hours worked and wages paid).
• Contains child labor rules limiting the hours and types of jobs minors can do, to protect their health and schooling.
• Provides protections around tips and certain special wage certificates (e.g., for student‑learners) under specific conditions.

Family and Medical Leave Act (FMLA)
For eligible employees of covered employers, FMLA generally provides:

• Up to 12 workweeks of unpaid, job‑protected leave in a 12‑month period for certain reasons, such as:
  • The employee’s own serious health condition.
  • Birth of a child and bonding, or placement of a child for adoption or foster care.
  • To care for a spouse, child, or parent with a serious health condition.
  • Certain military family needs.
• Up to 26 workweeks of military caregiver leave in a single 12‑month period to care for a covered servicemember with a serious injury or illness.
• Continuation of group health insurance on the same terms as if the employee had not taken leave.
• Right to return to the same or an equivalent job at the end of FMLA leave, and protection from interference or retaliation for using FMLA rights.

To file a complaint with the Wage and Hour Division (WHD), a worker follows a straightforward, confidential process:

1. Gather basic information (if available):

   • Your name and contact information.
   • Employer’s name, address, phone, type of business, and the name of a manager/owner.
   • Your job title, pay rate, how you are paid (hourly, salary, piece‑rate, tips), usual hours, dates of employment, and what you believe is wrong (e.g., unpaid overtime, below‑minimum wages, denied FMLA leave).

2. Choose how to file (free and confidential):

   • Online or local office: Use WHD’s online contact/complaint form or visit/call a local WHD office.
   • Telephone: Call the toll‑free helpline 1‑866‑4US‑WAGE (1‑866‑487‑9243).
   • Interpreters are available; complaints can be made regardless of immigration status.

3. WHD review and investigation:

   • WHD reviews your information and may open an investigation.
   • Investigators can examine time and pay records, interview workers and management, and determine whether the employer violated federal law.

4. Outcomes and protections:

   • If violations are found, WHD can pursue back wages and other remedies (and sometimes civil money penalties against the employer).
   • Your identity is kept confidential to the maximum extent possible; WHD does not disclose your name or the nature of the complaint to your employer, except where necessary to resolve the case.
   • Laws enforced by WHD prohibit retaliation for contacting WHD or asserting your rights.

There is no fee to file, and you do not need a lawyer to start a WHD complaint.