The U.S. Department of Labor (DOL)'s Wage Policy Shift: Why Workers Must Take Action on Their Own

The U.S. Department of Labor (DOL) just made a major change that could significantly affect how workers recover unpaid wages. 

In June 2025, the DOL announced it will no longer seek liquidated damages in wage and hour investigations, a move that drastically reduces what workers can expect when the government steps in.

Here’s what you should know.

What Changed?

For years, when the DOL investigated wage theft or unpaid overtime, it often pursued not just back pay, but also liquidated damages. Under the Fair Labor Standards Act (FLSA), these damages are equal to the amount of unpaid wages, essentially doubling what workers can recover. 

For example, if your employer owed you $5,000 in unpaid wages, liquidated damages could bring that total recovery to $10,000.

But under the new policy, the DOL’s Wage and Hour Division will only pursue back pay—no liquidated damages—during administrative investigations. That means in prelitigation matters, employees will only be entitled to half of what the law allows.

Why Does This Matter?

The DOL’s own announcement admits that Congress never explicitly gave the agency authority to supervise liquidated damages in administrative cases. As a result, the agency is now scaling back to recover only owed wages before filing a lawsuit.

While the DOL says this change will lead to “fairer, faster outcomes,” the truth is that it leaves workers with less money in their pockets, even in the most egregious cases of wage theft.

Workers Are Still Entitled to Full Damages, but You’ll Need to Fight for Them

It’s important to remember that this policy shift does not change your legal rights under the FLSA. You can still sue your employer directly in court for unpaid minimum wages, unpaid overtime, and liquidated damages equal to those lost wages.

What has changed is how much the government will fight for you on your behalf. Instead of pursuing full compensation, the DOL is effectively settling cases for half the damages workers are legally entitled to.

Why You Should Hire a Private Attorney at Morgan & Morgan

If you’ve been underpaid or denied overtime, relying solely on the DOL may no longer be in your best interest. Here’s why hiring a private law firm like Morgan & Morgan is often the stronger choice:

• Full Recovery: We pursue not just back pay, but also liquidated damages, penalties, and attorney’s fees.
• Aggressive Representation: Unlike the DOL, we aren’t bound by new blanket rules that limit what we can recover.
• Individualized Attention: Government investigations often focus on large groups of workers. We focus on your case and your best outcome.
• Experience Fighting Employers: With over 35 years of experience, Morgan & Morgan has recovered billions for employees who were cheated out of wages.
  
   

Contact Us for a Free Case Evaluation Today

The DOL’s shift means workers can no longer count on the government to fully enforce their wage rights. If your employer has failed to pay you fairly, you may only recover a fraction of what you’re entitled to if you rely on a DOL investigation.

But with Morgan & Morgan on your side, you can still fight for every dollar the law allows.

If you believe your employer has stolen your wages or denied you overtime, don’t wait. Contact Morgan & Morgan today for a free case evaluation.

Because when it comes to protecting your paycheck, we fight for the full and fair compensation, not just half of what you deserve.