Published date: 07/23/2025
The U.S. Department of Labor’s Wage and Hour Division announced it will no longer seek or collect liquidated damages during administrative investigations under the Fair Labor Standards Act. This change, clarified in Field Assistance Bulletin (FAB) 2025-3, reaffirms that liquidated damages are reserved for judicial proceedings and can only be determined by a court of law — not the department.
This marks a return to the department’s long-standing practice before 2010, when it began seeking such damages during investigations. Officials state that ending the practice will improve dispute resolution and lead to fairer, more timely outcomes for both workers and employers.
Read More: US Department of Labor to end practice of seeking liquidated damages in Wage and Hour investigations | U.S. Department of Labor
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