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elaws - employment laws assistance for workers and small businesses - FLSA Section 14(c) Advisor

Assessment of Civil Money Penalties (CMPs)

The FLSA authorizes the Wage and Hour Division to assess employers civil money penalties (CMPs) of up to $1,100 for each violation for repeated or willful violations of the minimum wage and overtime requirements of the Act. This includes employers who are authorized to pay special minimum wages to workers with disabilities.

CMPs may be assessed for a "repeated" violation when it can be proven that the employer had previously violated the minimum wage or overtime requirements of the FLSA. CMPs for a "willful" violation may be assessed when it can be shown that the employer knew that its conduct was prohibited by the FLSA or showed reckless disregard for the requirements of the FLSA.

CMPs are intended to discourage employers from future noncompliance and are not tied to the amount of the back wage liability incurred. They will ordinarily be assessed based on violations occurring within the normal two-year investigation period. Where violations are determined to be willful, the investigation will cover a three year period.

The regulations concerning CMPs for minimum wage and overtime violations, pursuant to Section 16(e) of the FLSA, are contained in Regulations 29 CFR Part 578.

Employers may also be subject to a civil money penalty of up to $11,000 for each employee who is the subject of a child labor violation.

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FLSA Section 14(c) Advisor | Wage and Hour Division