Julie Pace and Heidi Nunn-Gilman
A Field Assistance Bulletin (FAB) 2025-3 was published on June 27, 2025 and provides guidance on how the Wage and Hour Division should handle FLSA violations and expressly provides that the DOL is not able to pursue liquidated damages in administrative settlements. Instead, if DOL wants to seek double damages, it must do so through judicial action –not in the administrative process.
In recent years, DOL has automatically included liquidated damages, which are double the amount owed for unpaid back wages and overtime, in wage and hour investigations.
Prior to a decade ago, liquidated damages were not automatically included with DOL settlements. That was a newer trend that FAB 2025-3 reverses.
Companies still need to ensure good wage and hour compliance. Complete regular self-audits of time cards, compensation, and classifications of workers as piece rate, hourly, salaried exempt and salaried non-exempt. Make sure employees record all hours worked.
Consider using biometric, GPS or other electronic time-keeping options as those methods can help keep records and ensure integrity in hours worked. Make sure to pay overtime to piece rate workers and other non-exempt employees who work over 40 hours in a workweek.
We also recommend having all employees sign a time-keeping acknowledgement form that employees understand and agree to be honest and accurate in their recordkeeping practices, review their time card each week for accuracy and report any discrepancies, and includes other obligations to help foster a compliance program at your company.
For assistance with wage and hour compliance, conducting an internal audit of your company’s wage and hour practices, or OSHA, immigration compliance, or Forms I-9 contact Julie Pace at jpace@psgmlaw.com or 602.858.8799 or Heidi Nunn-Gilman at hgilman@psgmlaw.com or 602.851.8797.