-7-
2000-59.
The Nature of the Claim
First we consider whether the claim settled was based upon a
tort or tort type cause of action. From the record before us, we
consider the evidence, the stipulated facts, the complaint, and
the intent of the payor. Threlkeld v. Commissioner, 87 T.C.
1294, 1306 (1986), affd. 848 F.2d 81 (6th Cir. 1988); Bent v.
Commissioner, 87 T.C. 236, 245 (1986), affd. 835 F.2d 67 (3d Cir.
1987); Church v. Commissioner, 80 T.C. 1104, 1107 (1983).
There is no dispute that the 1993 complaint arose under the
FLSA to recover unpaid overtime compensation, liquidated damages,
attorney’s fees and costs. It is well settled that an action
under the FLSA, in and of itself, is not based upon a tort or
tort type right. See Jacobs v. Commissioner, supra. The FLSA
was enacted to establish minimum wages and maximum hours for
employees and it does not provide for personal injury
compensation. See Brooklyn Sav. Bank v. O’Neil, 324 U.S. 697,
707 (1945); Jacobs v. Commissioner, supra. The only relief
available under the FLSA is the payment of back wages and
liquidated damages for excessive hours worked. See 29 U.S.C.
235 n.6 (1992). But see Small Business Job Protection Act of
1996, Pub. L. 104-188, sec. 1605(a), 110 Stat. 1838, which
amended sec. 104(a)(2) to provide that for amounts received after
Aug. 20, 1996, a “personal injury” is limited to a physical
injury. On the other hand, an economic injury includes injuries
such as those arising out of the unlawful deprivation of either
full wages earned or the opportunity to earn them. Id.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011