News & Analysis as of

Liquidated Damages

Fisher Phillips

Managing Director Personally on the Hook for $2 Million in Wage Violations: 6 Steps to Avoid Liability

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Business owners, executives, and managers need to pay attention to wage and hour compliance or risk personal liability. In a recent ruling under federal and New Jersey wage and hour law, a managing director with some...more

Morgan Lewis

Noncompetes in China: Recent Developments Provide Guidance to Strengthen Enforceability

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Noncompete agreements are important tools that employers can use to protect proprietary assets, such as goodwill, customer relationships, employee relationships, trade secrets, and other confidential information. In general,...more

Morgan Lewis

California Supreme Court: ‘Good Faith’ Defense to Minimum Wage Liquidated Damages Must Show Attempt to Understand Law

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The California Supreme Court recently held in Iloff v. LaPaille that an employer seeking to assert the good-faith defense to avoid mandated liquidated damages for failing to pay an employee the minimum wages must show that...more

Lathrop GPM

New Jersey Federal Court Grants Franchisor’s Motion for Summary Judgment in a Breach of Contract Action Against Franchisee

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In La Quinta Franchising LLC v. Shin Hosp., Inc., 2025 WL 2751542 (D.N.J. Sept. 29, 2025), the franchisor brought claims for breach of a Franchise Agreement and liquidated damages against Shin Hospitality, Inc., Percy...more

UB Greensfelder LLP

NDAs and Contracts: How to Structure an Enforceable Non-Disclosure Agreement

UB Greensfelder LLP on

In nearly every business transaction, some degree of confidential information is exchanged. Whether it involves financial data, a client list, proprietary code or strategic plans, that information only has value if it remains...more

Proskauer - California Employment Law

Supreme Court Clarifies Employer’s Good Faith Defense To Liquidated Damages Claim

Iloff v. LaPaille, 18 Cal. 5th 551 (2025) - Laurence Iloff performed maintenance on various structures that were located on property that was owned by Bridgeville Properties, Inc. and managed by Cynthia LaPaille. Under an...more

Lewitt Hackman

Good Faith Requires Action: The New Standard for Employer Defense

Lewitt Hackman on

As defense attorneys, we often encounter matters where an employer’s good-faith mistake gives rise to wage and hour litigation. While ignorance of the law generally provides no defense, a good-faith mistake, historically...more

Davis Wright Tremaine LLP

Minimum Wage Defense Must Show Reasonable Attempt to Follow the Law

When it comes to minimum wage law violations in California, employers should take note that ignorance of the law has been ruled out as a valid good-faith defense to an award of liquidated damages. In Iloff v. LaPaille, the...more

Foley & Lardner LLP

Pricing Stability and Supply Continuity: Strategic Contracting for Reshoring

Foley & Lardner LLP on

Moving manufacturing operations back to the U.S. can reduce tariff exposure and simplify logistics, but it introduces new challenges such as labor shortages and operational risks. Companies must weigh these trade-offs...more

Venable LLP

You Can’t Always Get Liquidated Damages: DOL Delivers What You Need

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The U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) recently announced a significant change in how it resolves cases under the Fair Labor Standards Act (FLSA)....more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Minnesota Provides Guidance on 2026 Meal and Work Break Amendments

The January 1, 2026, changes to Minnesota’s meal and rest break laws require employers to provide fifteen-minute breaks and a thirty-minute meal break depending on hours worked. However, the vague amendments left more...more

Constangy, Brooks, Smith & Prophete, LLP

California Supreme Court raises bar for employers: “We didn’t know” is no defense

In a unanimous decision that strengthened California’s already robust worker protections laws, the state’s Supreme Court has made it harder for employers to avoid increased damages for minimum wage violations. The ruling in...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Supreme Court of California Rules Employers Can’t Claim Ignorance on State Wage Violations

On August 21, 2025, the Supreme Court of California ruled that employers must demonstrate that they took reasonable steps to comply with minimum wage laws to mount a good-faith defense against liquidated damages. The decision...more

Goldberg Segalla

US Department of Labor Takes Steps to Present Employers with Options to Resolve Wage and Hour Violations

Goldberg Segalla on

On June 27, 2025, the U.S. Department of Labor’s Wage and Hour Division (WHD) issued Field Assistance Bulletin (FAB) No. 2025-3 which formally prohibits WHD from seeking or collecting liquidated (double) damages in any...more

Freiberger Haber LLP

Consequential Damages: Are They Foreseeable?

Freiberger Haber LLP on

In BLDG 44 Developers LLC v. Pace Companies N.Y., LLC, 2025 N.Y. Slip Op 32881(U) (Sup. Ct., N.Y. County July 25, 2025) (here), BLDG 44 Developers LLC sued Pace Companies New York, LLC for breach of contract, seeking...more

Maynard Nexsen

Court of Appeals Upholds $9.3 Million Award for Nurses Misclassified as Independent Contractors by Healthcare Staffing Agency

Maynard Nexsen on

Companies often must determine whether to treat workers as employees or independent contractors. Workers who are properly classified as independent contractors are not subject to wage and hour laws requiring overtime pay or...more

Jaburg Wilk

Six Protections if You Win a USERRA Case

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If you’ve served in the military and faced problems at work because of your service—like being denied a job, promotion, or your old position back after deployment—you may have legal rights under the Uniformed Services...more

CDF Labor Law LLP

Employer’s Ignorance of the Law is Not a Good Faith Defense for Failing to Pay Minimum Wages, California Supreme Court Says

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Last week, in Iloff v. LaPaille, the California Supreme Court made clear the burden on employers when asserting a good faith defense to avoid paying liquidated damages for violations of minimum wage laws. In its long-awaited...more

Littler

California Supreme Court Issues Decision on Good-Faith Defense for Minimum Wage Violations and Enforcement of Paid Leave...

Littler on

In Iloff v. LaPaille, the California Supreme Court addressed when “liquidated” or double damages may be avoided by an employer for minimum wage violations and how employees can pursue paid leave claims under California’s...more

McGlinchey Stafford

Employment Pulse (August 2025 Edition)

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McGlinchey’s Employment Pulse showcases thought leadership from our team of experienced labor and employment attorneys, providing timely insights that help employers stay competitive, meet regulatory requirements, and tackle...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

DOL Resurrects PAID Program to Supervise Employers’ Self-Audits and Settlements of Potential FLSA and FMLA Violations

On July 24, 2025, the U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) announced it would once again oversee the Payroll Audit Independent Determination (PAID) program, allowing employers to self-report...more

McGlinchey Stafford

DOL Limits Authority to Seek Liquidated Damages in Wage and Hour Investigations

McGlinchey Stafford on

On June 27, 2025, a new enforcement directive from the U.S. Department of Labor (DOL)’s Wage and Hour Division (WHD) took effect, formally eliminating the agency’s policy of seeking the payment of liquidated damages in any...more

Cranfill Sumner LLP

DOL Ceases Enforcement of Liquidated Damages in FLSA Investigations

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The Federal Fair Labor Standards Act (“FLSA”) is a federal law that establishes a standard minimum wage and overtime pay for eligible employees.  The FLSA also provides that employers who violate its requirements can be held...more

Constangy, Brooks, Smith & Prophete, LLP

Fourth Circuit’s Steadfast ruling clarifies independent contractor status

The majority of a three-judge panel of the U.S. Court of Appeals for the Fourth Circuit has upheld a finding that a medical staffing agency misclassified approximately 1,100 nurses as independent contractors and owed them...more

Perkins Coie

DOL to No Longer Seek Pre-litigation Liquidated Damages

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The U.S. Department of Labor (DOL) announced in a field assistance bulletin that it will no longer seek liquidated damages in its wage and hour investigations.  This change, effective immediately, marks a significant...more

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