News & Analysis as of

Liquidated Damages

Lathrop GPM

New Jersey Federal Court Enters Default Judgment for Hotel Franchisor, Requests More Substantiation Before Ruling on Damages

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A federal district court in New Jersey recently entered an unopposed default judgement for breach of contract against Mani Hotels, LLC and Mehulkumar Ahir arising from the early termination of a franchise agreement with Days...more

McGlinchey Stafford

Court Finds That Amendment To BIPA Limiting Damages Does Not Apply Retroactively

McGlinchey Stafford on

A district court in Illinois has ruled that an amendment to the Illinois Biometric Information Privacy Act (BIPA) regarding a limitation on damages does not apply retroactively. Background - Plaintiff filed a class action...more

Jackson Lewis P.C.

Employers Won’t Face Double Damages from DOL Wage and Hour Division’s Administrative Proceedings

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The U.S. Department of Labor’s Wage and Hour Division (WHD) has issued new internal guidance that significantly changes its approach to administrative settlements under the Fair Labor Standards Act (FLSA). In Field Assistance...more

Morgan Lewis

US Department of Labor Rolls Back Biden-Era FLSA Practices

Morgan Lewis on

The US Department of Labor has recently rolled back two critical Biden-era wage and hour practices. First, the DOL has stated that it will no longer enforce the 2024 Final Rule’s framework for determining employee or...more

Seyfarth Shaw LLP

WHD Makes it Clear: Double Damages are (Liqui)Dated

Seyfarth Shaw LLP on

The DOL’s Wage and Hour Division just scrapped its policy of seeking liquidated damages (double damages) in FLSA investigations. Why? Because it probably didn’t have the statutory authority in the first place, and doing so...more

Mayer Brown

New York Amends Labor Law to Limit Damages for Late Payments to Manual Workers

Mayer Brown on

INTRODUCTION On May 9, 2025, New York State Governor Kathy Hochul signed a bill as part of the 2026 Fiscal Year budget, amending New York Labor Law (“NYLL”) Sections 191 and 198. The purpose of the amendment is to limit...more

Bradley Arant Boult Cummings LLP

No Longer Doubling Down: DOL Will Not Seek Liquidated Damages in Wage Claims Before Suit

The call or visit that no employer wants to receive: a Department of Labor representative asking to look at your payroll records. The Fair Labor Standards Act (FLSA) gives the Department of Labor’s Wage and Hour Division...more

Fisher Phillips

DOL Provides Long-Awaited Damages Relief to Employers in Wage and Hour Investigations: 3 Top Takeaways

Fisher Phillips on

The Department of Labor (DOL) just rolled back a Biden-era practice of demanding that employers pay liquidated damages – in an amount equal to back pay – to resolve wage and hour investigations. The Trump administration...more

Fisher Phillips

End of NY Legislative Session Leaves Employers Watching Key Workplace Bills

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New York’s two-year 2025-2026 legislative session hit its midpoint in June, with lawmakers wrapping up the first year by passing a slew of workplace-related bills that now await action from Governor Hochul. As federal labor...more

Fox Rothschild LLP

United States DOL announces that it will no longer oversee the payment of liquidated damages in FLSA administrative hearings

Fox Rothschild LLP on

Last week the Wage and Hour Division of the United States Department of Labor (“WHD”) made a significant announcement concerning the available damages in administrative proceedings. In a field assistance bulletin it...more

Blank Rome LLP

Ding! Dong! U.S. DOL Assessment of Liquidated Damages Is Dead!

Blank Rome LLP on

The United States Department of Labor (“DOL”) issued a Field Assistance Bulletin (“FAB”) on June 27, 2025, putting to bed, hopefully once and for all, the DOL’s unauthorized practice of requiring employers to pay liquidated...more

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

DOL Wage and Hour Division to No Longer Seek Liquidated Damages

On June 27, 2025, the U.S. Department of Labor (DOL) Wage and Hour Division (WHD) issued new field assistance indicating it will no longer seek liquidated damages in administrative matters against employers for unpaid minimum...more

Foley & Lardner LLP

In Case You Missed It: DOL Prohibited From Collecting Liquidated Damages in Wage & Hour Pre-Litigation Investigations

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In case you missed it, the Department of Labor (DOL) issued a News Release on Friday, June 27, 2025, announcing it would no longer seek liquidated damages during pre-litigation investigations or associated settlements (this...more

Littler

U.S. Department of Labor to Stop Seeking Liquidated Damages in Wage and Hour Investigations

Littler on

On June 27, 2025, the U.S. Department of Labor Wage and Hour Division (WHD) issued Field Assistance Bulletin No. 2025-3 (FAB 2025-3), advising that it will no longer request or attempt to collect liquidated damages in...more

CDF Labor Law LLP

DOL Terminates Practice of Seeking Liquidated Damages in Wage and Hour Investigations and Administrative Settlements

CDF Labor Law LLP on

Most California employers do not get investigated by the United States Department of Labor (“USDOL”) because wage and hour enforcement in California is generally covered by the California Labor Commissioner and plaintiffs in...more

Lathrop GPM

New Jersey Federal Court Enters Default Judgment Against Franchisee, Awards Franchisor Liquidated Damages

Lathrop GPM on

A federal court in New Jersey recently entered default judgment against franchisee Nisha Investments, LLC and its guarantor Rajesh Patel arising from their early termination of a franchise agreement with La Quinta...more

Perkins Coie

May Tip of the Month: New York Eases Penalties for First-Time Pay Frequency Violations

Perkins Coie on

On May 9, 2025, Governor Kathy Hochul signed into law significant amendments to the New York labor law, providing relief to employers in connection with frequency-of-pay violations. Previously, New York employers who failed...more

Vedder Price

New York State 2025 Budget Includes Limitation on Damages in Frequency-of-Pay Cases

Vedder Price on

On May 9, 2025, New York Governor Kathy Hochul signed Senate Bill S3006C into law which concerns New York State’s education, labor, housing, and family assistance budget for the 2025-2026 fiscal year. This budget, among many...more

BakerHostetler

Brakes Pumped on New York Labor Law’s Manual Worker Claims

BakerHostetler on

The recently passed 2025 New York State budget bill includes an amendment to the New York Labor Law that will have major implications for employers sued for late wage payments....more

Fisher Phillips

New York Delivers Good News to Employers in Battle Over Frequency of Payments Law for Manual Workers: 4 Top Takeaways

Fisher Phillips on

Businesses with New York employees are breathing a sigh of relief now that the state has finally addressed a hot button (and expensive) issue that has plagued them for nearly six years. A state court first ruled in 2019 that...more

FordHarrison

Liquidated Damages Now Unavailable in Certain New and Pending Payroll Frequency Lawsuits

FordHarrison on

Real World Impact:  Many New York employers facing substantial liability arising from class actions alleging pay frequency violations of New York Labor Law Section 198 now have relief. Governor Hochul recently signed into law...more

Mintz - Employment Viewpoints

New Amendments to the New York Labor Law Limit Certain Pay Frequency Claim Damages

New York State has resolved a recent judicial split regarding pay frequency violation remedies by amending the New York Labor Law (“NYLL”) to limit an employee’s ability to recover sizeable liquidated damages. New York...more

Fox Rothschild LLP

New York Scales Back Damages for Frequency-of-Pay Violations

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A recent change to New York labor law means employers will no longer face business-crippling lawsuits for minor frequency-of-pay mistakes, as long as they have not previously been found to have violated the state’s...more

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

New York’s 2025–26 Budget Includes Immediate Labor Law Reforms, Important Changes to Pay Frequency Laws

New York’s governor and state legislature have finally stumbled to completion of this year’s budget negotiations and enacted legislation as part of the 2025–26 state budget, which includes significant amendments to the New...more

Bond Schoeneck & King PLLC

Finally, New York Provides Relief for Employers Unaware of Weekly Pay Provision in the New York Labor Law

It is common practice across the country for employees to be paid every other week or twice per month, because that imposes much less time and manpower on an employer than running payroll weekly. But such a practice can...more

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