WASHINGTON, D.C. — The U.S. Department of Labor’s Wage and Hour Division has issued Field Assistance Bulletin (FAB) 2025-3, clarifying that it will no longer seek or collect liquidated damages in administrative matters under the Fair Labor Standards Act (FLSA). This move confirms that such damages are strictly the jurisdiction of the courts, as designated by Congress.
Historically, the department refrained from pursuing liquidated damages during administrative investigations until 2010, when the Obama administration implemented a policy allowing the practice before cases were referred for litigation. This approach was met with controversy and legal scrutiny until 2020, when the Trump administration introduced FAB 2020-2 to impose stricter limitations on such measures.
However, in 2021, the Biden administration reversed these restrictions with FAB 2021-2, reintroducing the division’s ability to seek liquidated damages during administrative matters. This change, criticized for its vague guidelines and broad discretion granted to the agency, created uncertainty for businesses and workers alike.
With the release of FAB 2025-3, the Wage and Hour Division has ended the controversial practice entirely, realigning its policy with the original intent of Congress. The department stated that ceasing this policy will promote more effective dispute resolution and deliver fairer, faster outcomes for all parties involved.
By reserving the authority to award liquidated damages solely to the judiciary, FAB 2025-3 provides greater clarity and consistency in enforcement, fostering an improved environment for American businesses and workers. This change aims to ensure a balanced and transparent regulatory process under the FLSA.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.