US Department of Labor to end practice of seeking liquidated damages in Wage and Hour investigations

WASHINGTON – The U.S. Department of Labor’s Wage and Hour Division today issued a field assistance bulletin clarifying that it may not seek or collect the payment of liquidated damages in any administrative matter under the Fair Labor Standards Act. 

The FAB reiterates that Congress made clear that such damages are reserved for judicial proceedings and responsibility falls to the courts of law – not the Department of Labor. 

Historically, the department did not seek liquidated damages in the administrative investigation stage until 2010, when the Obama administration began seeking liquidated damages prior to referral for litigation. In 2020, the Trump administration issued FAB 2020-2 to place guardrails on this controversial and legally questionable practice. 

The following year, the Biden administration issued FAB 2021-2, which outright rescinded the 2020 FAB and authorized the division to once again seek liquidated damages in administrative matters. This Biden-era FAB provided the regulated community with vague guidance on whether such damages would be sought, giving the agency virtually unfettered discretion. 

Today, the issuance of FAB 2025-3 ends the division’s ability to seek such damages in administrative proceedings. Ending this practice will foster more effective dispute resolution and ensure more fair, timely outcomes for American workers and businesses.

For additional guidance beyond the field assistance bulletin, workers and employers can contact the Wage and Hour Division at its toll-free helpline, 866-4US-WAGE (487-9243).