Second Circuit To Labor Law Plaintiff: Stop Looking In The Rearview Mirror For Liquidated Damages

Among the many recent amendments to the New York Labor Law, perhaps the most concerning to employers was the expansion of liquidated damages from 25% to 100%.  Viewed in tandem with the statute’s six-year limitations period, the change has the potential to vastly increase employers’ exposure for alleged violations.

Fortunately, the Second Circuit has given employers a modest reprieve, holding that the liquidated damages amendment is not retroactive.  As such, it will apply only from April 2011 forward.

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