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29 U.S.C. § 216Penalties

submitted 88 years ago by ch. 676 to r/title-29-LABOR · 1,686 words · no verdicts yet

in plain englishAI-generated · not legal advice

This section punishes violations of the wage, hour, and child labor rules in this law. A person who willfully breaks section 215 can be fined up to $10,000 or jailed six months. Violating employers must pay back wages, plus equal damages, and may face separate civil penalties too.

(a) Fines and imprisonment: A person who willfully violates section 215 can be fined up to $10,000 or imprisoned up to six months, or both. Nobody goes to prison for a first offense under this part — prison only applies after a person has already been convicted once before under this same subsection. (b) Damages, right of action, attorney's fees: An employer who violates the minimum wage rules (section 206) or overtime rules (section 207) owes the affected employees their unpaid wages, plus an equal amount again as "liquidated damages" — basically double the unpaid amount. An employer who retaliates against workers, or violates the protections in section 215(a)(3) or section 218d, owes whatever legal or equitable relief is appropriate, including giving someone their job back, a promotion, or lost wages, plus liquidated damages. An employer who violates the tip-credit rule in section 203(m)(2)(B) owes back the wrongfully kept tips plus an equal amount as liquidated damages. Employees can sue for this together, as a group, in any federal or state court, but each employee must consent in writing to join, and that consent must be filed with the court. If the employees win, the court must also order the employer to pay their attorney's fees and court costs. This right to sue by or on behalf of an employee ends once the Secretary of Labor has already filed a similar suit under section 217 seeking to stop the same unpaid-wage violation or the same section 215(a)(3)/218d violation. (c) Secretary supervises payment: The Secretary of Labor can supervise employers paying back unpaid minimum wages or overtime pay. If an employee accepts that payment in full, the employee gives up the right to sue for more under subsection (b) for that same unpaid amount and liquidated damages. The Secretary can also sue in any court of competent jurisdiction to recover unpaid wages and an equal amount as liquidated damages. Once the Secretary files that kind of suit, employees' own right to sue on the same claim ends, unless the Secretary's suit is later dismissed without prejudice at the Secretary's own request. The Secretary holds any money it recovers in a special deposit account and pays it out, on the Secretary's order, directly to the employees; money nobody claims within three years goes to the U.S. Treasury as miscellaneous receipts. The subsection also spells out when the Secretary's suit counts as "commenced" for statute-of-limitations purposes under the Portal-to-Portal Act, and extends this same authority and these same requirements to violations of the tip-credit provision in section 203(m)(2)(B). (d) Savings provision: In any action or proceeding started before, on, or after August 8, 1956, employers are protected from being held liable or punished under this chapter or the related Portal-to-Portal Act of 1947 for past pay practices in three narrow situations: (1) work covered by the section 213(f) exemption; (2) work performed in Guam, the Canal Zone, or Wake Island before this subsection's amendment took effect; or (3) work performed in a possession named in section 206(a)(3) before the Secretary set a minimum wage rate applicable to that work. (e) Civil penalties: (1)(A) Child labor violations (of section 212 or 213(c), or a regulation under them) can bring a civil penalty of up to (i) $11,000 per affected employee, or (ii) $50,000 if the violation causes the death or serious injury of a worker under 18 — and that penalty can be doubled for a repeated or willful violation. (B) "Serious injury" means (i) permanent loss or substantial impairment of a sense — sight, hearing, taste, smell, or touch; (ii) permanent loss or substantial impairment of a bodily member, organ, or mental faculty, including losing all or part of an arm, leg, foot, or hand; or (iii) permanent paralysis or substantial impairment causing loss of movement or mobility of an arm, leg, foot, or hand. (2) Repeated or willful violations of the minimum wage or overtime rules (sections 206, 207) can bring a civil penalty up to $1,100 per violation. Violating the tip-credit rule in section 203(m)(2)(B) can also bring a civil penalty up to $1,100, as the Secretary decides is appropriate, on top of owing the employee the stolen tips plus an equal amount as liquidated damages under subsection (b). (3) When deciding the penalty amount, the appropriateness of the penalty to the size of the business and the seriousness of the violation must be considered. Once the penalty is finally determined, it can be (A) deducted from money the United States owes the business, (B) recovered in a civil suit the Secretary brings, represented by the Solicitor of Labor, or (C) ordered by a court to be paid to the Secretary, in a suit for a section 215(a)(4) violation or a repeated or willful section 215(a)(2) violation. (4) The Secretary's administrative penalty decision becomes final unless the business formally takes exception within 15 days of getting certified-mail notice, in which case there's a hearing under section 554 of Title 5 and the Secretary's own regulations. (5) Except for civil penalties for section 212 (child labor) violations, penalty money collected under this section goes toward reimbursing the costs of investigating violations and assessing and collecting the penalties, under section 9a. Child-labor penalty money instead goes to the Treasury's general fund.
the actual law source: uscode.house.gov ↗public domain
(a) Fines and imprisonment

Any person who willfully violates any of the provisions of section 215 of this title shall upon conviction thereof be subject to a fine of not more than $10,000, or to imprisonment for not more than six months, or both. No person shall be imprisoned under this subsection except for an offense committed after the conviction of such person for a prior offense under this subsection.

(b) Damages; right of action; attorney’s fees and costs; termination of right of action

Any employer who violates the provisions of section 206 or section 207 of this title shall be liable to the employee or employees affected in the amount of their unpaid minimum wages, or their unpaid overtime compensation, as the case may be, and in an additional equal amount as liquidated damages. Any employer who violates the provisions of section 215(a)(3) or 218d of this title shall be liable for such legal or equitable relief as may be appropriate to effectuate the purposes of section 215(a)(3) or 218d of this title, including without limitation employment, reinstatement, promotion, and the payment of wages lost and an additional equal amount as liquidated damages. Any employer who violates section 203(m)(2)(B) of this title shall be liable to the employee or employees affected in the amount of the sum of any tip credit taken by the employer and all such tips unlawfully kept by the employer, and in an additional equal amount as liquidated damages. An action to recover the liability prescribed in the preceding sentences may be maintained against any employer (including a public agency) in any Federal or State court of competent jurisdiction by any one or more employees for and in behalf of himself or themselves and other employees similarly situated. No employee shall be a party plaintiff to any such action unless he gives his consent in writing to become such a party and such consent is filed in the court in which such action is brought. The court in such action shall, in addition to any judgment awarded to the plaintiff or plaintiffs, allow a reasonable attorney’s fee to be paid by the defendant, and costs of the action. The right provided by this subsection to bring an action by or on behalf of any employee, and the right of any employee to become a party plaintiff to any such action, shall terminate upon the filing of a complaint by the Secretary of Labor in an action under section 217 of this title in which (1) restraint is sought of any further delay in the payment of unpaid minimum wages, or the amount of unpaid overtime compensation, as the case may be, owing to such employee under section 206 or section 207 of this title by an employer liable therefor under the provisions of this subsection or (2) legal or equitable relief is sought as a result of alleged violations of section 215(a)(3) or 218d of this title.

(c) Payment of wages and compensation; waiver of claims; actions by the Secretary; limitation of actions

The Secretary is authorized to supervise the payment of the unpaid minimum wages or the unpaid overtime compensation owing to any employee or employees under section 206 or section 207 of this title, and the agreement of any employee to accept such payment shall upon payment in full constitute a waiver by such employee of any right he may have under subsection (b) of this section to such unpaid minimum wages or unpaid overtime compensation and an additional equal amount as liquidated damages. The Secretary may bring an action in any court of competent jurisdiction to recover the amount of unpaid minimum wages or overtime compensation and an equal amount as liquidated damages. The right provided by subsection (b) to bring an action by or on behalf of any employee to recover the liability specified in the first sentence of such subsection and of any employee to become a party plaintiff to any such action shall terminate upon the filing of a complaint by the Secretary in an action under this subsection in which a recovery is sought of unpaid minimum wages or unpaid overtime compensation under sections 206 and 207 of this title or liquidated or other damages provided by this subsection owing to such employee by an employer liable under the provisions of subsection (b), unless such action is dismissed without prejudice on motion of the Secretary. Any sums thus recovered by the Secretary of Labor on behalf of an employee pursuant to this subsection shall be held in a special deposit account and shall be paid, on order of the Secretary of Labor, directly to the employee or employees affected. Any such sums not paid to an employee because of inability to do so within a period of three years shall be covered into the Treasury of the United States as miscellaneous receipts. In determining when an action is commenced by the Secretary of Labor under this subsection for the purposes of the statutes of limitations provided in section 6(a) of the Portal-to-Portal Act of 1947 [29 U.S.C. 255(a)], it shall be considered to be commenced in the case of any individual claimant on the date when the complaint is filed if he is specifically named as a party plaintiff in the complaint, or if his name did not so appear, on the subsequent date on which his name is added as a party plaintiff in such action. The authority and requirements described in this subsection shall apply with respect to a violation of section 203(m)(2)(B) of this title, as appropriate, and the employer shall be liable for the amount of the sum of any tip credit taken by the employer and all such tips unlawfully kept by the employer, and an additional equal amount as liquidated damages.

(d) Savings provisions

In any action or proceeding commenced prior to, on, or after August 8, 1956, no employer shall be subject to any liability or punishment under this chapter or the Portal-to-Portal Act of 1947 [29 U.S.C. 251 et seq.] on account of his failure to comply with any provision or provisions of this chapter or such Act (1) with respect to work heretofore or hereafter performed in a workplace to which the exemption in section 213(f) of this title is applicable, (2) with respect to work performed in Guam, the Canal Zone or Wake Island before the effective date of this amendment of subsection (d), or (3) with respect to work performed in a possession named in section 206(a)(3) 1 of this title at any time prior to the establishment by the Secretary, as provided therein, of a minimum wage rate applicable to such work.

(e) Civil penalties for certain violations
(1)
(A)

Any person who violates the provisions of sections 2 212 or 213(c) of this title, relating to child labor, or any regulation issued pursuant to such sections, shall be subject to a civil penalty not to exceed—

(i)

$11,000 for each employee who was the subject of such a violation; or

(ii)

$50,000 with regard to each such violation that causes the death or serious injury of any employee under the age of 18 years, which penalty may be doubled where the violation is a repeated or willful violation.

(B)

For purposes of subparagraph (A), the term “serious injury” means—

(i)

permanent loss or substantial impairment of one of the senses (sight, hearing, taste, smell, tactile sensation);

(ii)

permanent loss or substantial impairment of the function of a bodily member, organ, or mental faculty, including the loss of all or part of an arm, leg, foot, hand or other body part; or

(iii)

permanent paralysis or substantial impairment that causes loss of movement or mobility of an arm, leg, foot, hand or other body part.

(2)

Any person who repeatedly or willfully violates section 206 or 207 of this title, relating to wages, shall be subject to a civil penalty not to exceed $1,100 for each such violation. Any person who violates section 203(m)(2)(B) of this title shall be subject to a civil penalty not to exceed $1,100 for each such violation, as the Secretary determines appropriate, in addition to being liable to the employee or employees affected for all tips unlawfully kept, and an additional equal amount as liquidated damages, as described in subsection (b).

(3)

In determining the amount of any penalty under this subsection, the appropriateness of such penalty to the size of the business of the person charged and the gravity of the violation shall be considered. The amount of any penalty under this subsection, when finally determined, may be—

(A)

deducted from any sums owing by the United States to the person charged;

(B)

recovered in a civil action brought by the Secretary in any court of competent jurisdiction, in which litigation the Secretary shall be represented by the Solicitor of Labor; or

(C)

ordered by the court, in an action brought for a violation of section 215(a)(4) of this title or a repeated or willful violation of section 215(a)(2) of this title, to be paid to the Secretary.

(4)

Any administrative determination by the Secretary of the amount of any penalty under this subsection shall be final, unless within 15 days after receipt of notice thereof by certified mail the person charged with the violation takes exception to the determination that the violations for which the penalty is imposed occurred, in which event final determination of the penalty shall be made in an administrative proceeding after opportunity for hearing in accordance with section 554 of title 5 and regulations to be promulgated by the Secretary.

(5)

Except for civil penalties collected for violations of section 212 of this title, sums collected as penalties pursuant to this section shall be applied toward reimbursement of the costs of determining the violations and assessing and collecting such penalties, in accordance with the provision of section 9a of this title. Civil penalties collected for violations of section 212 of this title shall be deposited in the general fund of the Treasury.

Source credit: (June 25, 1938, ch. 676, § 16, 52 Stat. 1069; May 14, 1947, ch. 52, § 5(a), 61 Stat. 87; Oct. 26, 1949, ch. 736, § 14, 63 Stat. 919; 1950 Reorg. Plan No. 6, §§ 1, 2, 15 F.R. 3174, 64 Stat. 1263; Aug. 8, 1956, ch. 1035, § 4, 70 Stat. 1118; Pub. L. 85–231, § 1(2), Aug. 30, 1957, 71 Stat. 514; Pub. L. 87–30, § 12(a), May 5, 1961, 75 Stat. 74; Pub. L. 89–601, title VI, § 601(a), Sept. 23, 1966, 80 Stat. 844; Pub. L. 93–259, §§ 6(d)(1), 25(c), 26, Apr. 8, 1974, 88 Stat. 61, 72, 73; Pub. L. 95–151, § 10, Nov. 1, 1977, 91 Stat. 1252; Pub. L. 101–157, § 9, Nov. 17, 1989, 103 Stat. 945; Pub. L. 101–508, title III, § 3103, Nov. 5, 1990, 104 Stat. 1388–29; Pub. L. 104–174, § 2, Aug. 6, 1996, 110 Stat. 1554; Pub. L. 110–233, title III, § 302(a), May 21, 2008, 122 Stat. 920; Pub. L. 115–141, div. S, title XII, § 1201(b), Mar. 23, 2018, 132 Stat. 1148; Pub. L. 117–328, div. KK, § 102(b)(2), Dec. 29, 2022, 136 Stat. 6096.)

history & why it existsrecord from the source credit
  • 1938Enacted · Act of June 25, 1938, ch. 676 · 52 Stat. 1069
  • 1947Amended · Act of May 14, 1947, ch. 52 · 61 Stat. 87
  • 1949Amended · Act of Oct. 26, 1949, ch. 736 · 63 Stat. 919
  • 1956Amended · Act of Aug. 8, 1956, ch. 1035 · 70 Stat. 1118
  • 1957Amended · Pub. L. 85-231 · 71 Stat. 514
  • 1961Amended · Pub. L. 87-30 · 75 Stat. 74
  • 1966Amended · Pub. L. 89-601 · 80 Stat. 844
  • 1974Amended · Pub. L. 93-259 · 88 Stat. 61, 72, 73
  • 1977Amended · Pub. L. 95-151 · 91 Stat. 1252
  • 1989Amended · Pub. L. 101-157 · 103 Stat. 945
  • 1990Amended · Pub. L. 101-508 · 104 Stat. 1388
  • 1996Amended · Pub. L. 104-174 · 110 Stat. 1554
  • 2008Amended · Pub. L. 110-233 · 122 Stat. 920
  • 2018Amended · Pub. L. 115-141 · 132 Stat. 1148
  • 2022Amended · Pub. L. 117-328 · 136 Stat. 6096

A history note hasn’t been published yet. The record shows enactment by ch. 676 on 1938-06-25.

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