As stated in Field Assistance Bulletin No. 2025-3, issued June 27, 2025, the U.S. Department of Labor (USDOL) Wage and Hour Division (WHD) will no longer seek payment of liquidated damages for failure to pay minimum wage and overtime to employees in any administrative matter under the Fair Labor Standards Act (FLSA). The only time WHD can seek liquidated damages is when a lawsuit is filed, and per applicable laws, a settlement or award is reached. In administrative (pre-litigation) settlements, employers will no longer face the possibility of double damages.
This rescinds FAB 2021-2, but does not affect matters where liquidated damages have been agreed to in writing before the effective date. Note also that this change applies only to federal administrative settlements under the FLSA.