Damages and Penalties

Awarded damages to employees for back wages can include payment of the unpaid minimum wages, overtime pay, and “an additional equal amount as liquidated damages.”  Employers may not avoid liquidated damages unless they can prove that the failure to follow FLSA requirements was both in good faith and “predicated upon reasonable grounds.”  If liquidated damages are part of the settlement, then prejudgment interest may not be awarded.  In the event that an employer “willfully” or “repeatedly” violates the FLSA section on minimum wages and maximum hours and overtime, he or she is subject to a civil penalty.  This penalty issued is up to $1,000 for each violation.  The definition of “repeatedly” means the employer has received previous notice of the violation; while “willful” considers the totality of the set of circumstances. An additional penalty for the employer is to pay the employee’s attorney’s fees.