No Pre-litigation Liquidated Damages in FLSA Administrative Settlements
July 30, 2025
When a matter of minimum wages or overtime is bought to the DOL’s Wage and Hour Division, employers may seek to resolve it without going to court. Whether employers may be subject to damages at this administrative level has been a yes/no issue since 2010. In the latest go-round, the answer is no. Employers can still be subject to back pay damages and civil penalties and employees can seek liquidated damages by litigating, liquidated damages at the administrative stage. The government may not seek, pursue, impose, accept, endorse, approve, encourage, leverage, or otherwise support in any way the payment of liquidated damages before the filing of a lawsuit. #IdeaoftheDay
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