08/21/2026
This week's legal term: Liquidated damages
Liquidated damages are an additional amount of money awarded to a worker on top of the wages they were unlawfully denied. Under the Fair Labor Standards Act, they typically equal the amount of unpaid wages, which means a worker's recovery can effectively double.
For example:
Owed $10,000 in unpaid overtime?
With liquidated damages, you could recover $20,000.
The original back pay, plus an equal amount on top.
At Josephson Dunlap, we believe knowledge is power. In wage theft cases, liquidated damages exist because a missing or delayed paycheck causes real harm that's hard to measure dollar for dollar, so the law sets a fixed, built-in remedy instead.
Rather than only recovering what they were originally owed, workers may be able to recover that amount a second time over, turning back pay into a fuller measure of justice for the time and wages that were taken from them.