Liquidated damages under the FLSA can be a big deal for employers. Damages may equal and are in addition to the sum of unpaid minimum wages or overtime compensation for non-exempt employees – millions of dollars in some cases – for violations such as worker misclassification or off-the-clock work. In other words, the employer can be liable for a larger penalty, effectively doubling the amount due.
DOL’s current policy should make it easier for employers to settle alleged violations with DOL. However, it is possible plaintiffs’ attorneys will advise clients to seek redress in court rather than through DOL.