The FLSA provides that a successful employee is usually entitled to double the
amount of unpaid back wages, called “liquidated damages”. Essentially, liquidated
damages are in lieu of interest. An employer can avoid paying liquidated damages only
if it shows that it acted in good faith in failing to pay for off the clock work, and that it had
a reasonable basis to believe that it need not pay for off the clock work. “Good faith” has
a special meaning under the FLSA, and requires that employers have made specific
investigation of the application of the FLSA to particular types of employees. Liquidated
damages are the rule, not the exception. Employees are normally entitled to liquidated
damages.
