The Department of Labor (DOL) recently announced its Wage and Hour Division (WHD) will be prohibited from seeking liquidated damages in administrative settlements under the Fair Labor Standards Act. This rescinds a prior WHD directive and is yet another instance of mixed messaging for employers relative to the change in presidential administrations. The update purports to promote settlement of such cases, particularly as liquidated damages may still be sought in court actions.
Business Takeaway: Employers facing WHD investigations could benefit tremendously under this new policy. At the same time, if history is any guide, the new policy will not last forever. Accordingly, now might be a good time to audit your pay practice and talk with us about rectifying any compliance issues.