Possible Damages for Wage and Hour Law Violations

Most employees agree with their employers that in return for doing their job, they will receive pay for their work as agreed. The federal Fair Labor Standards Act (FLSA) defines the minimum wage and overtime pay, among other things. Many states have enacted similar laws. Both FLSA and state laws determine the penalties that may be imposed on an employer who violates wage and hour laws.

While you can be entitled to back pay for unpaid wages if your employer fails to pay you minimum wage or overtime, you may be able to recover penalties and other damages from your employer, including liquidated and attorney’s fees and costs. Contact an experienced wage-and-hour attorney if you need to learn more about potential damages in your case.

Types of Damages for Wage and Hour Violations

The Fair Labor Standards Act regulates wages and work hours for most employees in the United States. The FLSA provides damages for wage violations such as:

• Failure to pay overtime
• Failure to pay minimum wage
• Wage theft (unpaid wages)
• Off-the-clock work
• Altering hours
• Misclassification

Damages for wage claims can include unpaid wages for minimum wage or overtime pay. You may also seek damages for your employer’s failure to comply with wage and hour laws. Damages can include interest on unpaid wages, liquidated damages, and attorneys’ fees.

The FLSA does not specifically provide for punitive damages, but such damages may be available in cases involving egregious conduct under other applicable laws.

Calculating Compensation for Unpaid Wages

An employer may be required to pay the employee previously unpaid minimum wage or overtime pay. An employer may also be required to pay an amount equal to that as liquidated damages. If the court finds that the employer failed to pay the employee minimum wage or legally mandated overtime pay, then the court must award those damages to the employee.  Attorney’s fees and legal costs may also be awarded to the employee by the court.

Independent contractors are not employees. Therefore, they are not entitled to overtime pay and have no basis for overtime claims.

Legal Process for Seeking Damages

The Wage and Hour Division of the U.S. Department of Labor (DOL) enforces the FLSA. Investigators across the United States conduct investigations and gather data about the case to determine whether an employer complied with the law.

There are different methods under FLSA for an employee to recover pay for unpaid minimum wages or overtime wages. The legal process for seeking damages includes the following:

• WHD supervision: The WHD may supervise the recovery of back wages.
• Secretary of Labor brings a lawsuit: The Secretary of Labor can bring suit for back wages and liquidated damages. Liquidated damages are an additional penalty, which can be equal to the back pay award. 
• Private lawsuit: You may file a private lawsuit for back pay and an equal amount as liquidated damages if the following are true: (1) you have not been paid back wages under WHD supervision, or (2) the Secretary of Labor has not filed a suit to recover the wages.

Wage and hour laws ensure employees are fairly compensated and seek to hold employers accountable for labor law violations. If the employer’s actions are widespread, a class action case may be a suitable way to pursue justice and maximize recovery.

Protecting Your Rights as an Employee

To protect your rights as an employee, you must meet all the strict timelines for filing claims. Do not delay contacting WHD or your state agency to file a claim.

Under federal law, the statute of limitations to file a lawsuit in court is within two years of the violation for which you claim back wages. However, in the case of an employer’s willful violation, a three-year statute of limitations applies.

State laws might have different deadlines for recovering unpaid wages. You may even have other legal claims to bring as well. They may have shorter deadlines, so it’s best not to delay filing your claim. An experienced wage-and-hour attorney can help protect your rights as an employee.

Importance of Legal Representation in Wage Disputes

The FLSA provides for damages for wage disputes under federal law, and every state has its own wage laws and rules about what damages may be imposed for violations. Therefore, it is critically important to seek legal advice from a wage-and-hour lawyer in the state where your employer is located. Once you’re in an attorney-client relationship, your lawyer will fight for your rights and help you pursue justice for your wage and hour claims.