Introduction to the Fair Labor Standards Act (FLSA)

objective element). 26 If a good faith defense is established, the court has discretion to reduce or eliminate an award of liquidated damages.

c. Emotional Distress Damages Aggrieved employees may recover mental and emotional distress damages for a violation of the FLSA’s anti-retaliation provision. 27 d. Civil Monetary Penalties The Act gives the Secretary of Labor the discretion to assess civil money penalties in an amount up to $1,100 for repeated or willful violations of the Act’s minimum wage and overtime provisions. 28 e. Attorneys’ Fees and Costs Prevailing plaintiffs in FLSA cases are entitled to recover reasonable attorneys’ fees and court costs from their employers. 29 3. C RIMINAL P ENALTIES Willful violations of the Act may be criminally prosecuted. Convictions carry a penalty of up to $10,000 for the first offense. For repeat offenses, imprisonment for up to six months may be imposed.30

W HO IS C OVERED BY THE FLSA? ( OR M ORE I MPORTANTLY , W HO IS N OT C OVERED ?)

S ECTION 2

A. I NTRODUCTION TO C OVERAGE I SSUES In evaluating FLSA compliance issues, employers should first determine whether the FLSA covers the individual or class of individuals in question (i.e., whether the individual is considered a covered employee under the Act). While most workers are covered employees, certain classes of individuals who perform services for employers are not considered employees. For example, volunteers and independent contractors are not covered by the Act. Persons not covered by the FLSA should be distinguished from those who are exempt from its overtime provisions. Exempt employees are covered by the FLSA in the sense that employers may have to pay certain minimum salaries, maintain records and otherwise comply with FLSA regulations. On the other hand, employers have no FLSA obligations with respect to persons who are not covered.

Introduction to the Fair Labor Standards Act (FLSA) ©2020 (s) Liebert Cassidy Whitmore 11