Employees can recover backpay damages that equal the difference between the amount an employee has been paid and the amount the employee would have been paid had the employer complied with the FLSA.  Also, the Act requires the employer to pay liquidated damages, which equal twice the owed back-pay, unless the employer can convince the court that it acted in good faith.  If liquidated damages are not awarded, prejudgment interest is usually recovered.  Under the FLSA and the majority of state overtime laws, the employer is required to pay for the recovery of all attorneys’ fees.

Statute of Limitations:  The term “statute of limitations” refers to the amount of time an employee may go back to recover damages.  The FLSA’s statute of limitations for overtime cases is two years.  However, if it can be proven that the employer “willfully” violated the law, the recovery period  increases to three years.  Most state overtime laws follow the FLSA recovery period, though some are longer.

Because of the limited recovery period, an employee who files a wage and hour complaint with the Department of Labor should be aware that the (“running clock”) on the statute of limitations will begin the day the employee files the complaint.  This means that if the Department of Labor were to take six months to investigate the matter without reaching a conclusion, the employee would have lost a half-year worth of potential backpay damages.

Proof of Damages:  According to the FLSA, employers must keep accurate payroll records of all their employees, regardless of whether the employer believes that the employee is exempt from receiving overtime compensation.  When accurate payroll information is not maintained by the employer, courts generally rely on an employee’s estimate of their own work time through testimony or written documentation.  If neither party has kept adequate records of the employee’s work-time, courts will generally rely on an employee’s recollection of their own work-time. In short, the employer is responsible for maintaining detailed payroll records for its employees.

Questions? Contact an overtime lawyer at Werman Law Office, P.C.