FLSA Expert Witness Cutler Consulting Services L.L.C.
FLSA Expert Witness Cutler Consulting Services L.L.C.

FLSA Willful Violations and “Reckless Disregard”

Willful FLSA Violations

Penalties for willful violations of the Fair Labor Standards Act are severe and can result in a doubling of the amount of back wages initially found due. Also, a two year statute of limitations that normally applies to the recovery of back pay can be increased to a three year period when violations are deemed willful.

Repeated willful violations of the FLSA can also result in criminal prosecution and the violator fined up to $10,000. A second conviction can result in imprisonment.

Employers must be proactive in protecting themselves from ever being charged with willfully violating the provisions of the Fair Labor Standards Act.

Fair Labor Standards Act Civil Monetary Penalties

The United States Department of Labor can assess civil monetary penalties for willful violations of the FLSA if an employer knew his pay practices were in violation of the FLSA, or if the employer acted with “Reckless Disregard” in violating the provisions of the FLSA. The Wage and Hour Division, in addition to the courts, is responsible for issuing a determination of “Reckless Disregard” if FLSA violations are found as a result of an investigation by the Wage and Hour Division.

 As required by the Federal Civil Penalties Inflation Adjustment Act of 2015 and effective on January 21, 2021, willful violations can result in the following penalties being assessed by the U. S. Department of Labor’s Secretary of Labor:

    • Employers who willfully or repeatedly violate the FLSA minimum wage or overtime pay requirements can be subject to a civil money penalty of up to $2,074 on a per employee basis for each such violation.
    • Violators of the child labor provisions are subject to a civil money penalty of up to $13,227 for each young worker who was employed in violation. Willful or repeated child labor FLSA violations in which the minor was seriously injured or killed can result in a civil monetary penalty of $120,230.
    • In the case of federal contracts and willful violations, an employer can be “debarred” and can lose their ability to continue to do business with the federal government.