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 (c) Melissa P. Malcom, LLC All Rights Reserved
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. (c) Melissa P. Malcom, LLC All Rights Reserved
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. (c) Melissa P. Malcom, LLC All Rights Reserved