WHD Limits Supervised Payments, No Liquidated Damages

Effective June 27, 2025, the Wage and Hour Division (WHD) will no longer seek or supervise the payment of liquidated damages in administrative settlements under the Fair Labor Standards Act (FLSA). This bulletin rescinds FAB 2021-2 and clarifies that the WHD's authority under Section 216(c) of the FLSA is limited to supervising the payment of unpaid minimum wages or overtime compensation. The Department has determined that liquidated damages can only be sought in judicial proceedings, not in pre-litigation administrative investigations or resolutions.

This change means employers resolving FLSA violations through WHD administrative processes will no longer be required to pay liquidated damages in those settlements. The WHD will now focus solely on recovering back wages. Companies should be aware that this policy shift does not affect the availability of liquidated damages in private employee lawsuits or enforcement actions brought by the Secretary of Labor through litigation.