The U.S. Department of Labor’s Wage and Hour Division has issued guidance stating that it would no longer request liquidated damages in pre-litigation investigations or resolutions.
According to the Department of Labor’s new policy, “Congress has not clearly granted the Department the authority to supervise the payment of liquidated damages in administrative matters. Any attempt to do so exceeds the Department’s authority.” As such, the Department of Labor no longer believes it has the authority to seek liquidated damages under the Federal Labor Standards Act prior to litigation.
It is important to note that the New York Labor Law permits liquidated damages equal to 100% of the total unpaid wages due. And there is even better news for workers who are victims of wage theft in New Jersey because the New Jersey Labor Law authorizes liquidated damages equal to 200% of unpaid wages.
If you believe you are a victim of wage theft or have questions about your rights, contact the attorneys of Pechman Law Group at 212-583-9500.
