The US Labor Department ended a practice of seeking liquidated damages in settlements over unpaid wages and overtime outside of litigation, reversing a policy implemented during both the Obama and Biden administrations.
In a Field Assistance Bulletin released Friday, the acting Wage and Hour administrator Donald Harrison clarified that the division wasn’t permitted to collect such monetary damages in administrative matters brought under the Fair Labor Standards Act prior to filing a lawsuit.
“Congress made clear that such damages are reserved for judicial proceedings and responsibility falls to the courts of law—not the Department of Labor,” the agency said in ...
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