Cost of a hypothetical violation: 15 employees who were not paid overtime 100 hours of unpaid...

Cost of a hypothetical violation:

15 employees who were not paid overtime

100 hours of unpaid overtime per year

$12 per hour = average regular rate of pay

One year’s liability = $27,000

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The FLSA has a three year statute of limitations.

Therefore, the risk is becomes three years of overtime. 3 x $27,000 = $81,000

Plus, the employer is liable for the employees’ attorneys’ fees.


Finally, the FLSA allows employees to collect liquidated damages equal to the total amount of unpaid overtime.

Therefore, the complete risk is $81,000 + $81,000 + attorneys’ fees,

or $162,000 + attorneys’ fees.


Cost of a hypothetical violation: 15 employees who were not paid overtime 100 hours of unpaid...

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