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Warren, Democrats slam Trump for letting employers off the hook, call it 'wage theft' program

The Massachusetts Democrat and other senators hit the Labor Department after an NBC News report earlier this week.
by Suzy Khimm /
Image: Sen. Elizabeth Warren, D-Mass., listens during a hearing on Capitol Hill in Washington
Sen. Elizabeth Warren, D-Mass., at a hearing on Capitol Hill on Feb. 24, 2015.Kevin Lamarque / Reuters file

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Sen. Elizabeth Warren and other leading Democrats are demanding answers about a new Trump administration program that rewards employers who self-report wage and overtime violations, warning that the initiative could "seriously harm workers being cheated by their employers."

Under the pilot program, which was the focus of an NBC special report on Monday, employers who come clean about minimum wage and overtime violations can avoid additional penalties and private litigation by bilked employees.

In a letter to Labor Secretary Alexander Acosta on Tuesday, Warren, of Masschusetts, and her colleagues warned that the program, known as Payroll Audit Independent Determination (PAID), would allow employers to avoid serious consequences for wage theft.

"The PAID program fails to hold them accountable for their unethical and illegal behavior," they wrote. "Letting violators off the hook for wage theft penalties tilts the economic playing field even further against workers and in favor of unethical corporations that break the law.”

The letter was co-signed by Sens. Sherrod Brown of Ohio, Kirsten Gillibrand of New York, Chris Van Hollen of Maryland and Tammy Baldwin of Wisconsin.

The Democratic senators asked Acosta to provide detailed information about the program, including the Trump administration's criteria for determining whether employers were acting in "good faith" or using the program to evade enforcement. New York's attorney general also has filed suit against the Labor Department for failing to provide records about the program.

The letter said that the six-month pilot program, which is scheduled to run until October, should not be extended until the Labor Department fully evaluates its impact.

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