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ARTICLE · 08 JANUARY 2018

FLSA Penalties Increase

Fisher Phillips LLP
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This week the U.S. Department of Labor published increases in the civil money penalties it can impose for certain violations of the federal Fair Labor Standards Act.

United StatesEmployment and HR
Caroline Brown
Caroline Brown
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This week the U.S. Department of Labor published increases in the civil money penalties it can impose for certain violations of the federal Fair Labor Standards Act.

These new levels, approximately 2% higher than those established last year, apply to any penalties assessed after the effective date of January 2, 2018 for predicate violations that occurred after November 2, 2015.

Minimum Wage/Overtime Penalties

The FLSA's Section 16(e)(2) authorizes USDOL to impose a monetary penalty for a "repeated" or "willful" violation of that law's minimum-wage or overtime requirements.  In accordance with the enactment of the Civil Penalties Inflation Adjustment Act Improvements Act of 2015, agencies now adjust penalties annually. The newest increase, effective immediately, permits USDOL to impose a monetary penalty of up to $1,964 for a violation.

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