Benjamin Franklin once advised that an ounce of prevention is worth a pound of cure. This axiom is still relevant today, especially in the context of the Fair Labor Standards Act (FLSA). As originally written, the FLSA mandated that employees prevailing in minimum wage or overtime lawsuits were automatically entitled liquidated damages equal to their unpaid minimum wages or overtime compensation, thereby doubling any such award. With the subsequent passage of the Portal-to-Portal Act, Congress gave employers a way to avoid liquidated damages if the employer acted in good faith and had reasonable grounds for believing they were in compliance with the FLSA. Thus, with a little preventative pay classification analysis and documentation, an employer may be able to reduce its potential FLSA liability by half. Continue Reading