What is meant by “liquidated damages” in employment law?

Liquidated damages in employment law refer to pre-determined amounts of money that an employer is obligated to pay if they violate wage and hour laws. This concept is designed to provide clarity and certainty regarding the consequences of non-compliance, allowing employees to know what financial compensation they could expect if their rights under these laws are infringed upon. The purpose of liquidated damages is to serve as both a deterrent to employers from violating these laws and a form of compensation for employees who have been wronged.

In the context of wage and hour violations, such as unpaid overtime or minimum wage infractions, liquidated damages can provide an additional layer of protection for employees by ensuring that they are compensated not only for the wages owed but also for the additional harm caused by the delay in receiving those wages. This framework highlights the importance of adhering to established labor standards and pays heed to the rights of workers in the employment relationship.