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Negligent employer liable for 2 years of back pay, not 3


The Fair Labor Standards Act has two measures of liability: Pay two years of back pay if your failure to pay minimum wages or overtime wasn’t willful, or three years if it was. A mistaken failure to pay overtime due to negligence isn’t the same thing as willfully failing to pay employees, so an employer’s liability for back pay was limited to two years, a federal appeals court explained.


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