Calculating damages in FLSA and wage and hour cases

Singer et. al v. City of Waco, Texas

Moral of the story: Audit your data, use the correct number of work period hours in regular rate calculations, and consider offsets

In this case the Court considers the issue of damages in wage and hour case involving the Waco fire department. In the case, the jury found that the City willfully acted (and in bad faith) when it failed to pay the Plaintiffs overtime due under FLSA.

Following the liability portion of the case, the 180 plaintiff WFD employees entered the damages phase of the trial. In the damages phrase both sides engaged economic damage experts to calculate the value of the unpaid overtime.

Although the The court awarded the plaintiff's a significant amount that including liquidated damages, the award was significantly less than the plaintiffs' expert opined. Specifically, the Court stated that:

• The summaries prepared by the defendant were more credible because they were double checked and audited.
• The Court was also clear (and provided very detailed damage tables) to make sure that the correct number of hours in a pay period were used (as required under FLSA for the calculation of the regular rate).
• To avoid unjust enrichment, The City should be able to count OT overpayments as an offset to the FLSA underpayments.
• In this case the offset was calculated as by, first determining the underpayments due under FLSA, assessing the liquidated damage requirement of FLSA, and then adding the amount underpayments due to the Texas Local Government Code. Only then should the overpayments made by the City during the four years prior to filing the lawsuit be offset against the total damages amount.

Bottom line: Good case to review when calculating damages in wage and hour cases


damage_calc_waco.pdf