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DOL to Seek Liquidated Damages in Pre-Litigation Settlements | Arent Fox

In a new Field Assistance Bulletin (FAB), the Wage and Hour Division announced that it will return to pursuing liquidated damages from employers found due in its pre-litigation. ....

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DOL Seeking Liquidated Damages in Lieu of Litigation

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DOL Returns to the Practice of Seeking Liquidated Damages in Settlements in Lieu of Litigation, Rescinding Trump-Era Policy (US)
Tuesday, April 13, 2021
On April 9, 2021, the U.S. Department of Labor (“DOL”) issued Field Assistance Bulletin No. 2021-2, which provides updated guidance to Wage and Hour Division (“WHD”) field staff regarding the practice of seeking liquidated damages in settlements in lieu of litigation. In so doing, the DOL rescinded a Trump-era policy aimed at reducing the imposition of liquidated damages in wage cases.
It is well-established that under the Fair Labor Standards Act (“FLSA”), employers who violate the provisions of the FLSA involving minimum wages, overtime compensation, and protections for employees who receive tips are liable for the unpaid wages or unlawfully kept tips and for an additional equal amount as liquidated damages – in other words, double damages. Prior to June 23, 2020, it had bee ....

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