DOL Dumps Trump-Era Limits on Double Damages in Wage Cases

The U.S. Labor Department will increase its use of liquidated damages—or double the amount of back pay an employer owes—when enforcing wage laws, retreating from a Trump-era policy that scaled back application of the punitive tool.

DOL’s Wage and Hour Division stated in a memo Friday that the Trump policy was revoked, effective immediately, and that investigators—with approval from their regional office leaders—once again have greater discretion in when to seek liquidated damages as part of settlements for unpaid minimum wages or overtime.

The Trump administration in June 2020 curtailed use of the technique in pre-litigation settlements, after management attorneys ...