Maine Department of Labor starts recovering liquidated damages for workers

September 23, 2024

For Immediate Release: September 23, 2024

Maine Department of Labor starts recovering liquidated damages for workers

The Department has been able to negotiate liquidated damages for workers affected by labor law violations four times, three of which have been this year.

AUGUSTA - The Maine Department of Labor announced today that it has negotiated the recovery of $20,135.12 owed to 22 workers from three companies across Maine.

Through a recent settlement agreement, the Maine Department of Labor's Wage and Hour Division recovered $7,915.22 in owed wages and liquidated damages for seven workers at Law Calibration, LLC in Saco. , the Division recovered $655.38 in wages and $1,310.76 in liquidated damages for four workers at Dollar General to resolve a complaint of violations of the Maine Equal Pay Act. And September 13, the Division signed a settlement agreement with Lincoln Infrastructure, LLC, whereby the company will pay a total of $10,253.76 in liquidated damages to 11 employees that must be paid by October 7, in addition to a $8,000 penalty.

"Employers must pay workers the wages they have earned, when they are due," said Dr. Jason Moyer-Lee, Director of the Bureau of Labor Standards. "When they do not, it effectively forces the worker into providing the employer an interest-free loan. It is right that the workers then be compensated for the hardship through the payment of liquidated damages."

These cases predated the implementation of 'An Act to Increase Enforcement and Accountability for Wage Violations' (PL 2023 c. 651) - https://legislature.maine.gov/backend/App/services/getDocument.aspx?documentId=107322 , which went into effect on August 9, 2024, and provided the Department with the power to order the payment of wages, interest, and liquidated damages. Absent the law, the Division was able to negotiate settlements that reduced fines in exchange for the employers paying wages and liquidated damages to their workers. The new legislation strengthens the Division's ability to require the payment of wages and liquidated damages in the future.

The increasing focus on liquidated damages for workers is part of the Department's ongoing efforts in strategic enforcement, which uses a variety of resources and tools to effectively achieve widespread and long-lasting compliance with labor laws. In addition to the increased fines for violating labor laws - https://www.maine.gov/labor/newsevents/article.shtml?id=13037628 , the Department is collaborating with both business and union representatives. Recent efforts have included a joint initiative with the National Federation of Independent Business - https://www.maine.gov/labor/newsevents/article.shtml?id=12889119 to consult with small Maine businesses on the development of guidance materials that will help employers comply with the law.

The Division updates its Wage and Hour Violations webpage - https://www.maine.gov/labor/bls/whv2024/index.shtml on a quarterly basis.

Anyone who thinks their employment rights have been violated may submit a complaint here: Wage and Hour Complaint Form - https://www.maine.gov/labor/labor_laws/complaint/index.shtml . They may also contact MDOL's Wage and Hour Division at (207) 623-7900 or https://www.maine.gov/labor/contact with questions.