The U.S. Department of Labor has repealed a Trump administration policy and restored investigators' ability to request liquidation in conciliation settlements, or twice as much pay as an employer owes, for alleged violations of the Fair Labor Standards Act
A blog issued on Friday by Jessica Looman, chief administrator of DOL's payroll and hourly wage department, said during FLSA that employers who violate the minimum wage, overtime and protection for employees who receive tips are responsible for unpaid wages or illegal. stored tips and for an additional equal amount of compensation.
The blog said: “The department's use of this enforcement tool will provide an incentive for employers to comply with the law, to compare the conditions for those who play by the rules and to alleviate the injustices that are exacerbated when important low-wage workers face the extra and for the usual burden of wage theft.
The Department stopped using this enforcement tool in June 2020. The Wage and Hourly Department's Field Assistance Bulletin issued following President Trump's decision in May 2020 1
The bulletin stated that on 1 July 2020, the department would not evaluate damages before disputes unless there was clear evidence of bad faith and intent; the employer's explanation of the infringements showed that they were the result of a bona fide dispute over illegal law under the FLSA; the employer had no previous history of violations; and the issue involved only individual coverage, among other provisions.
According to Looman's blog, from fiscal year 2016 through fiscal year 2010, the division had estimated more than $ 200 million in discontinued injuries to approximately 250,000 affected workers prior to the enforcement tool. was repealed.