Types of Damages Under the FLSA
Under 29 U.S.C. § 216(b), a successful FLSA plaintiff can recover three categories of damages:
| Damage Type | What It Means | Typical Amount |
|---|---|---|
| Back Pay | All wages you should have been paid but weren't | Varies — 2–3 years of violations |
| Liquidated Damages | An automatic doubling of your back pay in most cases | Equal to back pay amount |
| Attorney Fees | Your attorney's fees, paid by the employer | Paid by employer if you win |
| Court Costs | Filing fees and litigation expenses | Paid by employer if you win |
Example: What Could $2/Hour of Unpaid Overtime Be Worth?
Suppose you worked 10 hours of overtime per week at $20/hour but were only paid straight time (not time-and-a-half). Your unpaid overtime rate shortfall is $10/hour.
- 10 hrs/week × $10/hr × 52 weeks = $5,200/year in back pay
- Over 2 years = $10,400 in back pay
- Liquidated damages (equal amount) = additional $10,400
- Total potential recovery: $20,800+ (before attorney fees)
This is a simplified example. Actual recovery depends on your specific hours, rate, and violation duration.
Recovery Ranges by Claim Type
| Claim Type | Typical Recovery Range |
|---|---|
| ⏰ Unpaid Overtime | $5,000 – $50,000 |
| 💰 Minimum Wage Violations | $2,000 – $20,000 |
| 📋 Employee Misclassification | $10,000 – $100,000 |
| 🕐 Off-the-Clock Work | $3,000 – $30,000 |
| 🍽️ Tip Theft & Tip Credit Abuse | $2,000 – $25,000 |
| 🥗 Meal & Rest Break Violations | $1,000 – $15,000 |
| ⚖️ Retaliation Claims | $15,000 – $150,000 |
| 👥 Class Action / Collective Action | $50,000 – $500,000+ |
How Far Back Can You Recover?
The FLSA allows recovery for:
- 2 years of back pay for standard violations
- 3 years of back pay if the employer's violation was "willful" (knowing or reckless)
Many state wage laws allow recovery for longer periods (up to 6 years in some states). An attorney will identify which limitations period gives you the best recovery.
Will I Have to Pay Taxes on My Recovery?
FLSA settlements are generally treated as wages and are subject to income and payroll taxes on the back pay portion. Liquidated damages may be treated differently. Your attorney or a tax professional can advise you on the specific tax treatment of your settlement.