DOL Scales Back on Double Damages in Prelitigation Settlements

Effective July 1, the DOL has stopped seeking double damages – often referred to as liquidated damages – in many cases that it settles before suing but will seek them in litigation. Michelle Anderson explained to SHRM that liquidated damages are a multiplier of any back wages owed. She says that the imposition of liquidated damages during a DOL prelitigation settlement has varied under different presidential administrations. In recent months prior to the DOL’s announcement, she found that the agency was moving away from imposing liquidated damages as a matter of course.

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