Brian David Nelson and Shauna Lee Nelson - Page 9




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         Threlkeld v. Commissioner, supra at 1307; Burditt v.                         
         Commissioner, T.C. Memo. 1999-117.                                           
              The settlement agreement in the instant case expressly                  
         provides:  “All Settlement Proceeds are paid to Plaintiffs on                
         account of personal injuries.”  The terms of the settlement                  
         agreement, however, do not reflect the substance of the                      
         settlement.  See Burditt v. Commissioner, supra.                             
              The 1993 complaint filed in the action underlying this case             
         was brought under the FLSA to recover unpaid overtime                        
         compensation, liquidated damages, and attorney’s fees.  No claims            
         of personal injury were made in the complaint.                               
              The FLSA does not provide for personal injury compensation.             
         See Jacobs v. Commissioner, T.C. Memo. 2000-59.  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 liquidated damages.            
         See 29 U.S.C. sec. 216(b) (1994).  The liquidated damages are                
         intended to compensate employees for damages too obscure or                  
         difficult to estimate caused by the delay of wage payment.  See              
         Overnight Motor Transp. Co. v. Missel, 316 U.S. 572, 583-584                 
         (1942).                                                                      
              Petitioner’s recovery of back wages is not attributable to              
         personal injury or sickness.  See Schleier v. Commissioner, supra            






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