FLSA Penalties

Editor's Note: The costs of violating the FLSA can mount quickly, and then multiply by the number of similarly situated employees.

Michael CardmanOverview: Employers that violate Fair Labor Standards Act (FLSA) regulations can be held liable for back wages, liquidated damages, equitable relief, compensatory damages, attorney fees, civil penalties, injunctive penalties and fines.

Because it is relatively easy for employees who were similarly situated - that is, subject to a common policy or plan - to sue as a group under a collective action, employers' liabilities for back wages and liquidated damages can multiply, sometimes leading to multi-million dollar verdicts and settlements.

Trends: The number of lawsuits filed under the FLSA continues to climb year after year. At the same time, the U.S. Department of Labor's Wage and Hour Division remains committed in its efforts to enforce the law.

Author: Michael Cardman, Legal Editor

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