Kentucky Case May Decide DOL’s Power to Seek Punitive Damages for FLSA Retaliation
A federal case in Kentucky may determine if DOL can seek punitive damages for FLSA retaliation.
Why it matters: Employers and legal counsel need clear guidance on exposure to punitive damages for alleged FLSA retaliation. The outcome could shape compliance and litigation risks across the Sixth Circuit.
- The DOL filed suit against Ike's Artisan Pizza in the Eastern District of Kentucky, alleging FLSA retaliation.
- The agency argues the FLSA permits punitive damages in retaliation cases, citing statutory language.
- Federal circuit courts are split: the Seventh Circuit allows punitive damages; the Eleventh Circuit does not.
- The Sixth Circuit—which covers Kentucky—has not yet ruled on this question.
The U.S. Department of Labor’s ongoing lawsuit in Kentucky could settle a major open question: whether punitive damages are available for retaliation claims under the Fair Labor Standards Act (FLSA) in the Sixth Circuit.
In the case of Walsh v. Ike's Artisan Pizza, L.L.C. et al, filed on November 21, 2022 in the Eastern District of Kentucky (Law360), the DOL alleges FLSA violations, including unlawful retaliation against employees. The Department explicitly asserts that the FLSA’s statutory text allows the agency to pursue punitive damages in such cases. As reported, “the statutory language of the Fair Labor Standards Act allows the agency to seek punitive damages in its retaliation cases.”
Appellate courts are divided: the Seventh Circuit has held that punitive damages are available for FLSA retaliation, while the Eleventh Circuit has taken the opposite view (OS Attorneys). The Sixth Circuit, where this Kentucky case sits, has not ruled on the question, putting employers and counsel in a holding pattern.
Kentucky itself has seen significant punitive damage awards in recent years. In 2016, the state Supreme Court affirmed a punitive verdict 386 times greater than compensatory damages in a federal labor statute case (McGuireWoods), underscoring local judicial willingness to consider large awards in employment-related cases.
- Case Title: Walsh v. Ike's Artisan Pizza, L.L.C. et al
- Case Number: 6:22-cv-00217
- Court: Eastern District of Kentucky
- Date Filed: November 21, 2022
This lawsuit’s outcome could offer the first clear guidance on whether employers in Kentucky—and the broader Sixth Circuit—face heightened punitive exposure under the FLSA for retaliation claims.
By the numbers:
- 386x — Ratio of punitive to compensatory damages affirmed by Kentucky Supreme Court in a 2016 labor case