EmploymentQuestion 958 of 1605

Under Labor Code §1194.2, when an employee prevails on a minimum wage claim, 'liquidated damages' generally equal:

a.Nothing, since liquidated damages are not allowed in California
b.Ten percent of the unpaid wages
c.A flat $1,000
d.An amount equal to the unpaid minimum wages (effectively doubling the recovery)

Explanation

Labor Code §1194.2 provides that an employee recovering unpaid minimum wages is also entitled to liquidated damages in an amount equal to those unpaid wages, plus interest. This effectively doubles the minimum-wage recovery unless the employer proves it acted in good faith with reasonable grounds to believe it was in compliance. It applies to minimum wage claims specifically.

Law Reference: Labor Code §1194.2; liquidated damages

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