What are liquidated damages under FLSA?

Under the FLSA, liquidated damages are an amount equal to the pay employees should have received. In other words, employees can recover double “back pay” damages for unpaid overtime. Employers can only avoid double damages for unpaid overtime if they can show two things.

Are punitive damages available under FLSA?

The FLSA does not have a specific provision for punitive damages: an amount intended to punish the employer for intentionally violating the law. A minority of courts will award punitive damages if you were retaliated against for exercising your rights under the FLSA.

What is FLSA premium pay?

“Premium” Pay. Certain premium payments made by employers for work in excess of or outside of specified daily or weekly standard work periods or on certain special days are regarded as overtime premiums.

How many years of back pay can an employee demand as a remedy for a FLSA claim?

Generally, a 2-year statute of limitations applies to the recovery of back wages and liquidated damages. A 3-year statute of limitations applies in cases involving willful violations. Remedies may be recovered through administrative procedures, litigation, and/or criminal prosecution.

What are reasonable liquidated damages?

In order for a liquidated damages provision to be enforceable (1) the loss or harm from a breach of the contract must be uncertain or difficult to prove with certainty, and (2) the liquidated damages must be reasonable in light of the anticipated or actual damages caused by the breach.

Are FLSA liquidated damages taxable?

According to two legal memoranda, the IRS concluded that penalty wages payable under California law are liquidated damages, not taxable wages.

How are liquidated damages wage claims calculated?

If you were paid less than the minimum wage, you are entitled to liquidated damages equal to the amount of your lost wages. For example, if your employer paid you only $10 an hour, but you were legally entitled to $15 an hour, you would receive an extra $5 for each hour worked.

What is the difference between overtime and FLSA overtime?

California’s Overtime Laws Are Stronger Under FLSA, overtime must be paid at 1.5 times the employee’s hourly rate for working more than 40 hours during a workweek. FLSA overtime rules also do not apply to agricultural workers who prepare crops for transportation or processing within the same state.

How does FLSA calculate overtime pay?

Under the FLSA, overtime pay is determined by multiplying the employee’s “straight time rate of pay” by all overtime hours worked PLUS one-half of the employee’s “hourly regular rate of pay” times all overtime hours worked. All overtime work that is ordered or approved must be compensated.

How are liquidated damages paid?

A liquidated damages clause specifies a predetermined amount of money that must be paid as damages for failure to perform under a contract. Instead, the breaching party pays the predetermined sum provided by the liquidated damages provision.

Are liquidated damages mandatory in FLSA cases?

Liquidated damages are not mandatory, but they are awarded in the clear majority of FLSA cases. Under the original version of the FLSA, liquidated damages were awarded to all successful FLSA claimants.

Should I settle my FLSA lawsuit?

If the employer simply assumed that an exemption applied because the salary basis test was met, liquidated damages are extremely likely. On a purely practical level, the spectre of potential liquidated damages is often sufficient to convince the employer to consider settling an FLSA lawsuit.

What are a plaintiff’s rights under the FLSA?

(A successful FLSA plaintiff is also entitled to recover attorneys’ fees and court costs as well). As the FLSA regulations state, this additional money is intended to “constitute compensation for the retention of a workman’s pay where the required wages are not paid on time.”

How much can I sue my employer for unpaid overtime?

Thus, if the jury finds that the employer owes $10,000 in unpaid overtime, the court may increase the total award to $20,000. If the unpaid overtime is $15,000, the total award may be $30,000.