Introduction to the Fair Labor Standards Act (FLSA)

5. P REMIUM AND S EVERANCE P AYS The FLSA does not require employers to pay premiums for certain types of work, or for work performed during certain hours or on Saturdays, Sundays and holidays. Likewise, the Act imposes no requirement to pay a severance upon termination of employment. 6. L IMITATIONS ON H OURS OF W ORK The Act does not limit the number of hours that employees aged sixteen and over may work per day or per week. However, employers must pay overtime to non-exempt employees for all hours actually worked beyond the maximum hours in a work period (usually forty in a seven day work period). C. R EMEDIES AND E NFORCEMENT The Secretary of Labor is empowered to initiate litigation against any employer to achieve compliance with the Act. 20 More commonly, however, private litigation is initiated by an individual or group of employees – sometimes with the help of the employees’ union. Private litigation may be commenced in state or federal court. 1. S TATUTE OF L IMITATIONS The statute of limitations for FLSA recovery is two years, but may extend to three years upon a finding that an employer’s violation was “willful.” 21 A willful violation is shown when an employer knew or showed reckless disregard as to whether its conduct was prohibited by the Act. 22 Courts have interpreted this to mean that “[a]n employer’s violation of the FLSA is ‘willful’ when it is ‘on notice of its FLSA requirements, yet takes no affirmative action to assure compliance with them.’” 23 a. Backpay Typically, employees will assert that they are owed backpay for unpaid minimum wages or overtime under the Act. b. Liquidated Damages The Act provides for “liquidated damages” if the employee establishes a violation. The amount of liquidated damages is usually equal to the amount of backpay owed. 24 Liquidated damages are mandatory, unless an employer can prove that it acted in “good faith.” 25 The good faith defense incorporates both a subjective and objective element. The employer must establish that it had an honest intention to ascertain and follow the requirements of the FLSA (the subjective element) and that it had reasonable grounds for believing its conduct complied with the Act (the 2. R EMEDIES The Act sets forth a wide range of penalties and remedies for violations, including:

Introduction to the Fair Labor Standards Act (FLSA) ©2020 (s) Liebert Cassidy Whitmore 10