The Glee star and the former gigolo were photographed strolling around in a park and going for a hike in Burbank, California on June 27.
"It's still very new, but they are enjoying each other's company," a source close told Us Weekly of the relationship. "Lea's not stupid, so she's not jumping into anything. So far, it's an honest and happy relationship. Whatever his past may be, their current relationship is based on honesty."
Rumors that the singer was "quietly" dating Paetz -- a former gigolo, lifestyle coach and dating expert -- began in early June. The two met on the set of the singer's music video for her single, "On My Way."
"They are both supportive of each other and what each other has been through in the past," the insider added. "They make a good team. Lea's friends say he's a great guy and dotes on her. Lea's found some happiness again."