Connecticut Imposes Double Damages For Failure To Pay Proper Minimum Wage Or Overtime
On June 23, 2015, Connecticut Governor Dannel P. Malloy signed into law a new statute that imposes double damages on employers who fail to pay an employee minimum wage or overtime. With one exception, the new law requires a court to award double damages plus court costs and attorney's fees if it finds that an employer has (1) failed to pay an employee's wages, accrued fringe benefits, or arbitration award or (2) failed to meet the law's requirements for an employee's minimum wage or overtime rates.
"An Act Concerning an Employer's Failure to Pay Wages" (Public Act 15-86) will take effect on October 1, 2015. It applies to private and public employers of any size, including the state and municipalities. Notably, the legislation overrules well-established Connecticut Supreme Court precedent that awards for double damages and attorney's fees are inappropriate without a trial court's finding of bad faith, arbitrariness or unreasonableness.1
Public Act 15-86 provides that if an employee is paid less than the minimum wage or overtime wages to which he or she is entitled, the employee may recover in a successful civil action twice the full amount of the minimum wage or overtime wages less any sum paid by the employer, plus costs and reasonable attorney's fees. The court will determine costs and attorney's fees. If the employer can establish it had a good faith belief that the wages paid were in compliance with the law, the employee may recover the full amount of the correct wages less any amount paid by the employer, with costs and reasonable attorney's fees. Note that the Act does not define what will satisfy the "good faith" standard, although it is reasonable to expect that courts will likely follow the "good faith" exception that applies to FLSA claims.2
An agreement between an employee and an employer to work for less than the minimum wage or overtime wages is no defense to an action under the new legislation.
Public Act 15-86 also provides that the Commissioner of the Connecticut Department of Labor may collect the full amount of unpaid minimum wages or overtime wages to which an employee is entitled along with interest calculated from the date the wages should have been received. The Commissioner also may bring legal action to recover double damages, and the employer will be required to pay costs and reasonable attorney's fees. Wages collected by the Commissioner for an employee whose whereabouts are unknown will be held for three months...
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