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Liquidated Damages

Lathrop GPM

New Jersey Federal Court Enters Default Judgment Against Franchisee, Awards Franchisor Liquidated Damages

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A federal court in New Jersey recently entered default judgment against franchisee Nisha Investments, LLC and its guarantor Rajesh Patel arising from their early termination of a franchise agreement with La Quinta...more

Perkins Coie

May Tip of the Month: New York Eases Penalties for First-Time Pay Frequency Violations

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On May 9, 2025, Governor Kathy Hochul signed into law significant amendments to the New York labor law, providing relief to employers in connection with frequency-of-pay violations. Previously, New York employers who failed...more

Vedder Price

New York State 2025 Budget Includes Limitation on Damages in Frequency-of-Pay Cases

Vedder Price on

On May 9, 2025, New York Governor Kathy Hochul signed Senate Bill S3006C into law which concerns New York State’s education, labor, housing, and family assistance budget for the 2025-2026 fiscal year. This budget, among many...more

BakerHostetler

Brakes Pumped on New York Labor Law’s Manual Worker Claims

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The recently passed 2025 New York State budget bill includes an amendment to the New York Labor Law that will have major implications for employers sued for late wage payments....more

Fisher Phillips

New York Delivers Good News to Employers in Battle Over Frequency of Payments Law for Manual Workers: 4 Top Takeaways

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Businesses with New York employees are breathing a sigh of relief now that the state has finally addressed a hot button (and expensive) issue that has plagued them for nearly six years. A state court first ruled in 2019 that...more

FordHarrison

Liquidated Damages Now Unavailable in Certain New and Pending Payroll Frequency Lawsuits

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Real World Impact:  Many New York employers facing substantial liability arising from class actions alleging pay frequency violations of New York Labor Law Section 198 now have relief. Governor Hochul recently signed into law...more

Mintz - Employment Viewpoints

New Amendments to the New York Labor Law Limit Certain Pay Frequency Claim Damages

New York State has resolved a recent judicial split regarding pay frequency violation remedies by amending the New York Labor Law (“NYLL”) to limit an employee’s ability to recover sizeable liquidated damages. New York...more

Fox Rothschild LLP

New York Scales Back Damages for Frequency-of-Pay Violations

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A recent change to New York labor law means employers will no longer face business-crippling lawsuits for minor frequency-of-pay mistakes, as long as they have not previously been found to have violated the state’s...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

New York’s 2025–26 Budget Includes Immediate Labor Law Reforms, Important Changes to Pay Frequency Laws

New York’s governor and state legislature have finally stumbled to completion of this year’s budget negotiations and enacted legislation as part of the 2025–26 state budget, which includes significant amendments to the New...more

Bond Schoeneck & King PLLC

Finally, New York Provides Relief for Employers Unaware of Weekly Pay Provision in the New York Labor Law

It is common practice across the country for employees to be paid every other week or twice per month, because that imposes much less time and manpower on an employer than running payroll weekly. But such a practice can...more

Husch Blackwell LLP

Powerful Promises: Performance Guarantees and Liquidated Damages in Solar and Biogas EPC Contracts

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Performance guarantees and performance liquidated damages (PLDs) are an essential element of most engineering, procurement, and construction (EPC) contracts, especially those related to solar and biogas projects; they make...more

Proskauer - Law and the Workplace

Labor Law Amendments Limit Damages for Violation of New York’s Weekly Pay Law

As we’ve blogged on previously, there’s a split in the New York intermediate-level appellate courts as to whether a private right of action exists for a violation of Labor Law § 191(1)(a), which—absent a waiver by the...more

Venable LLP

Iamaleava v. Razorbacks: Are NIL Buyouts the Future of College Sports?

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When a party to a contract fails to fulfill its contractual obligations, the non-breaching party often can seek damages or restitution. However, in the world of name, image, and likeness (NIL), it may not be so simple. ...more

Pietragallo Gordon Alfano Bosick & Raspanti,...

NJ Expands Wage Law to Cover Commissions – How It Compares to PA

The New Jersey Supreme Court recently ruled that commissions are considered “wages” under New Jersey’s Wage Payment Law (“NJWPL”). This decision—which allows employees whose commissions are not timely paid to recover 200% of...more

Morgan Lewis

English High Court Confirms Enforceability of Termination Sum Provisions in JOLCO Structures

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The English High Court has confirmed the enforceability of provisions providing for significant termination payments from a defaulting airline following the termination of an aircraft leasing arrangement using a JOLCO...more

Foley & Lardner LLP

Noncompetes in Flux: What Else Can Employers Do to Protect Themselves?

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As we continue to report, noncompete agreements have been subject to unprecedented scrutiny over the past few years. Last April, the Federal Trade Commission (FTC) finalized a rule (“Final Rule”) ostensibly banning...more

Procopio, Cory, Hargreaves & Savitch LLP

[Webinar] Mission-Critical Infrastructure: Navigating Risk in Data Center Design and Construction - April 24th, 11:00 am - 12:00...

What are key legal strategies for managing risk in the fast-evolving world of data center development? In this informative webinar, you'll learn principles of risk allocation, the influence of emerging technologies, common...more

Seyfarth Shaw LLP

Not Fooling Around: Critical New York State Legislative Updates for Employers as April Begins

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During the first quarter of 2025, the New York State legislature and Governor Kathy Hochul have been actively advancing several initiatives that – if passed and signed – will require New York employers to adapt their policies...more

Hahn Loeser & Parks LLP

Construction Contracts for Manufacturing Facilities

The Federal Government’s recent imposition of tariffs appears designed largely to bring manufacturing back inside the United States. News reports indicate the Government understands that tariffs may initially cause pain but...more

Gray Reed

Disrupted Operations – Owners Beware! – Part 2 (DAMAGES)

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Liquidated damages are intended to provide predictability to the owner and contractor as to the financial consequence of not completing a project in a timely manner. Since liquidated damages are intended to compensate the...more

Lathrop GPM

New Jersey Federal Court Grants Summary Judgment Against Hotel Franchise Agreement Guarantor Enforcing Liquidated Damages...

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A federal court in New Jersey recently granted summary judgment against the guarantor of a hotel franchise agreement, requiring him to pay contractual post-termination damages. Ramada Worldwide Inc. v. Keys Hosp., LLC, 2024...more

Gray Reed

Weathering the Storm—Part 1: Understanding Liquidated and Consequential Damages in Construction Contracts

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When project delays occur due to natural disasters, the financial implications can be severe. Construction stakeholders often focus on immediate physical damages while overlooking the potentially devastating impact of...more

Bowditch & Dewey

Liquidated Damages v. Actual Damages – Which Is the Better Choice?

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Liquidated damages provisions are common to all types of agreements, from leases to construction contracts. While liquidated damages provisions may appear “boilerplate” and full of legalese, they profoundly impact how much a...more

Seward & Kissel LLP

Employment Litigation Roundup: September 2024

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In Nunez v. Syncsort Incorporated, a Massachusetts court held that a retention bonus did not constitute not “wages” under the Massachusetts Wage Act (the “Wage Act”). The plaintiff-employee alleged that his former employer...more

Proskauer Rose LLP

Third Circuit Follows Fifth and Ninth Circuits on Treatment of Make-Whole Claims in Bankruptcy

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In a much-anticipated decision, the United States Court of Appeals for the Third Circuit recently held that unsecured noteholders’ claims against a debtor for certain “Applicable Premiums” were the “economic equivalent” to...more

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