The Fair Labor Standards Act establishes standards for overtime pay. Unless an employee is exempt from the FLSA’s overtime provisions, an employee is entitled to receive overtime pay for hours worked in excess of forty in a workweek at a rate of not less than one and one-half times the employee’s regular rate of pay.
Disputes often arise between employers and employees regarding overtime compensation issues. If an employee seeks to recover unpaid overtime compensation via a court action against the employer, the employee may recover a “liquidated damages” award. A liquidated damages award is an award of additional compensation, up to an amount equal to the unpaid overtime compensation.
Liquidated damages are not awarded in all cases. If an employer shows to the satisfaction of the court that the act or omission giving rise to the lawsuit was in good faith and that the employer had reasonable grounds for believing that its act or omission was not a violation of the FLSA, the court may award no liquidated damages or may award a lesser amount than allowed by law.
To speak to an employment attorney regarding overtime compensation issues, contact the employment lawyers at Clouse Dunn Khoshbin LLP at [email protected].
