The United States Department of Labor (“DOL”) announced two changes in June 2025 which are beneficial for employers.
1. First, USDOL relaunched and expanded its Opinion Letter Program, under which employers can request legal interpretations. The program now authorizes opinion letters from:
- Wage and Hour Division
- Occupational Safety and Health Administration
- Employee Benefits Security Administration
- Veterans Employment and Training Service
- Mine Safety and Health Administration
Opinion letters are formal guidance from the DOL explaining how the agency interprets and applies the law to a specific situation. Although the letters are not binding on the courts, they do provide significant clarity for employers, particularly where the application of a particular law to a specific set of facts is murky. Employers can rely on these letters to create a “good faith” defense, which is important in defending claims under the Fair Labor Standards Act.
2. Later in June, the DOL issued Field Assistance Bulletin No. 2025-3, which stated that it will no longer seek liquidated damages in Administrative Settlements under the Fair Labor Standards Act, but will only seek the payment of unpaid minimum wages or overtime. Liquidated damages, or “double damages” is a penalty that courts can impose in private litigation, but employers who are being audited by the DOL will not face this penalty, making settlement of such audits quite a bit easier.
