995 F.3d 342
4th Cir.2021Background
- From 2009–2014 Bobby Edwards forced JCS (“Jack”), a man with an intellectual disability (IQ ~70), to live at and work for J&J Cafeteria over 100 hours per week without pay.
- Edwards controlled Jack through isolation, threats, verbal and physical abuse (including burns, whipping, and beatings).
- Jack was removed by authorities in October 2014; Edwards pleaded guilty to forced labor under the Trafficking Victims Protection Act (TVPA), 18 U.S.C. § 1589.
- The district court sentenced Edwards to 120 months imprisonment and ordered $272,952.96 in restitution for unpaid minimum wages and overtime under the Fair Labor Standards Act (FLSA).
- The court denied the government’s request to add an equal amount in FLSA liquidated damages, concluding such damages are punitive and only available in civil cases.
- The government appealed; the Fourth Circuit vacated the restitution award in part and remanded for recalculation to include FLSA liquidated damages.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether FLSA liquidated damages are part of the “value of the victim’s labor” under 18 U.S.C. § 1593(b)(3) and therefore restitutionable under the TVPA | TVPA incorporates the FLSA’s minimum-wage and overtime guarantees, including § 216(b) liquidated damages; they are part of the victim’s losses | Liquidated damages are punitive and a civil remedy only; restitution should be limited to unpaid wages/overtime (actual losses) | Liquidated damages are compensatory (an estimate of actual loss from delayed payment), are encompassed by the FLSA guarantees incorporated in § 1593(b)(3), and must be included in TVPA restitution; case remanded to recalculate restitution including liquidated damages |
Key Cases Cited
- United States v. Sabhnani, 599 F.3d 215 (2d Cir. 2010) (interpreting TVPA to incorporate FLSA wage protections)
- United States v. Toure, 965 F.3d 393 (5th Cir. 2020) (including liquidated damages in restitution under TVPA)
- Overnight Motor Transp. Co. v. Missel, 316 U.S. 572 (1942) (liquidated damages are compensatory, not a penalty)
- Brooklyn Savings Bank v. O’Neil, 324 U.S. 697 (1945) (Congress recognized double payment by way of liquidated damages to restore workers harmed by delayed pay)
- Mayhew v. Wells, 125 F.3d 216 (4th Cir. 1997) (awarding liquidated damages under FLSA is the norm)
- United States v. Ritchie, 858 F.3d 201 (4th Cir. 2017) (restitution requires compensating all actual losses caused by defendant)