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was intended by the parties to be for a different purpose. See
Bagley v. Commissioner, supra at 406; Robinson v. Commissioner,
102 T.C. 116, 127 (1994), affd. in part, revd. in part, and
remanded on other grounds 70 F.3d 34 (5th Cir. 1995).
Petitioners rely on section 8 of the Settlement Agreement
that “All Settlement Proceeds are paid to Plaintiffs on account
of personal injuries.” However, the record clearly shows that
the complaint in the class action was exclusively for the
recovery of “overtime compensation, liquidated damages,
attorney’s fees and costs” under the FLSA. In Jacobs v.
Commissioner, supra, this Court held that recoveries for claims
based on the FLSA are not excludable from gross income because
FLSA does not provide for personal injury compensation. The FLSA
was enacted to establish minimum wages and maximum hours for
employees. See Brooklyn Sav. Bank v. O’Neil, 324 U.S. 697, 707
(1945). The only relief available under the FLSA for excessive
hours worked is the payment of back wages and payment of
liquidated damages. See FLSA 29 U.S.C. sec. 216(b) (1994).
Liquidated damages are intended to compensate the employee for
damages “too obscure or difficult to estimate caused by the delay
of late payment.” Jacobs v. Commissioner, supra; see also
Overnight Motor Transp. Co. v. Missel, 316 U.S. 572, 583-584
(1942). Also, we note petitioner’s own testimony during trial
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