Atlanta Employment Attorneys Blog
Across the country, many state and local governments are enacting – or debating — legislation to combat wage theft. Another body considering statutory changes is the federal government, where a proposed bill would substantially increase the penalties on employers found to have violated the FLSA’s prohibitions against wage theft. Whether you are a worker who has been denied pay you were owed or yours is a business seeking to ensure statutory compliance, get the answers you need by consulting an experienced Atlanta wage and hour lawyer.
Governments that have recently enacted, or are debating, new wage theft laws include Oregon, California, Minnesota, New York State, and the City of Denver, to name a few.
The proposal pending in the U.S. House of Representatives, which has come up in each of the last two Congresses, is a bill called the “Wage Theft Prevention and Wage Recovery Act.”
The bill generally maintains the current standard for what does (or does not) constitute wage theft. Where the bill would break new ground is in the FLSA’s penalties for violations. The bill would modify the existing text of 29 U.S.C. § 204(f), which currently permits workers to recover compensation “for unpaid minimum wages, or unpaid overtime compensation, and liquidated damages” by adding language allowing workers to recover interest. An award of interest can be a significant sum, and a major component of an employee’s achieving complete success in a FLSA wage theft case.
From Double to Triple Damages
Another key change would relate to liquidated damages themselves. Currently, the FLSA says that liquidated damages should equal the amount of wrongfully unpaid wages. This formula functionally allows employees to recover double the amount of damages they prove. The new bill would amend § 204(f) to say that liquidated damages are to be calculated as “equal to… 2 times such amount of unpaid wages or unpaid overtime compensation.” Essentially, the act would allow the worker to recover triple, rather than double, damages.
The 2022 bill did not become law. So far, the current bill has not come to the floor of the House of Representatives for a full vote.
Nevertheless, the bill is another reminder to employers of the paramount importance of complete FLSA compliance. Should an upcoming Congress have a different makeup and a bill mirroring the current one become law, employers would face a significant increase in their possible liability exposure. As noted above, the bill maintains the current standards of what constitutes wage theft, including: “employers violating minimum wage requirements, failing to pay overtime compensation, requiring off-the-clock work, failing to provide final payments, misclassifying employees as being exempt from overtime compensation or as independent contractors rather than as employees, and improperly withholding tips.” In other words, anything from failing to pay workers for all time worked to misclassifying someone as exempt or an independent contractor could result in triple damages plus interest.
The best time to ensure that your business fully complies with everything the FLSA demands is now. The knowledgeable Atlanta wage and hour attorneys at the law firm of Parks, Chesin & Walbert offer the information and guidance your business needs to ensure your pay practices satisfy everything the federal statutes require. If you are a worker with FLSA or other wage theft questions, our team can provide the straightforward answers and advice you deserve. Contact us today at 404-873-8048 or through this website to schedule a consultation to learn more.