29 U.S.C. § 259 — Reliance in future on administrative rul-

Page 116 TITLE 29—LABOR § 259 1 See References in Text note below. ployers to which he belonged. Such a defense, if established, shall be a bar to the action or pro- ceeding, notwithstanding that after such act or omission, such administrative regulation, order, ruling, approval, interpretation, practice, or en- forcement policy is modified or rescinded or is determined by judicial authority to be invalid or of no legal effect. (May 14, 1947, ch. 52, § 9, 61 Stat. 88.) Editorial Notes REFERENCES IN TEXT The Fair Labor Standards Act of 1938, as amended, re- ferred to in text, is act June 25, 1938, ch. 676, 52 Stat. 1060, which is classified generally to chapter 8 (§ 201 et seq.) of this title. For complete classification of this Act to the Code, see section 201 of this title and Tables. The Walsh-Healey and Bacon-Davis Acts, referred to in text, are defined for purposes of this chapter in sec- tion 262 of this title. § 259. Reliance in future on administrative rul- ings, etc. (a) In any action or proceeding based on any act or omission on or after May 14, 1947, no em- ployer shall be subject to any liability or pun- ishment for or on account of the failure of the employer to pay minimum wages or overtime compensation under the Fair Labor Standards Act of 1938, as amended [29 U.S.C. 201 et seq.], the Walsh-Healey Act, or the Bacon-Davis Act,1 if he pleads and proves that the act or omission complained of was in good faith in conformity with and in reliance on any written administra- tive regulation, order, ruling, approval, or inter- pretation, of the agency of the United States specified in subsection (b) of this section, or any administrative practice or enforcement policy of such agency with respect to the class of employ- ers to which he belonged. Such a defense, if es- tablished, shall be a bar to the action or pro- ceeding, notwithstanding that after such act or omission, such administrative regulation, order, ruling, approval, interpretation, practice, or en- forcement policy is modified or rescinded or is determined by judicial authority to be invalid or of no legal effect. (b) The agency referred to in subsection (a) shall be— (1) in the case of the Fair Labor Standards Act of 1938, as amended [29 U.S.C. 201 et seq.]— the Administrator of the Wage and Hour Divi- sion of the Department of Labor; (2) in the case of the Walsh-Healey Act—the Secretary of Labor, or any Federal officer uti- lized by him in the administration of such Act; and (3) in the case of the Bacon-Davis Act 1—the Secretary of Labor. (May 14, 1947, ch. 52, § 10, 61 Stat. 89.) Editorial Notes REFERENCES IN TEXT The Fair Labor Standards Act of 1938, as amended, re- ferred to in text, is act June 25, 1938, ch. 676, 52 Stat. 1060, which is classified generally to chapter 8 (§ 201 et seq.) of this title. For complete classification of this Act to the Code, see section 201 of this title and Tables. The Walsh-Healey and Bacon-Davis Acts, referred to in text, are defined for purposes of this chapter in sec- tion 262 of this title. Executive Documents TRANSFER OF FUNCTIONS Functions relating to enforcement and administra- tion of equal pay provisions vested by subsec. (b)(1) of this section in Administrator of Wage and Hour Divi- sion of Department of Labor transferred to Equal Em- ployment Opportunity Commission by Reorg. Plan No. 1 of 1978, § 1, 43 F.R. 19807, 92 Stat. 3781, set out in the Appendix to Title 5, Government Organization and Em- ployees, effective Jan. 1, 1979, as provided by section 1–101 of Ex. Ord. No. 12106, Dec. 28, 1978, 44 F.R. 1053. For transfer of functions of other officers, employees, and agencies of Department of Labor, with certain ex- ceptions, to Secretary of Labor, with power to delegate, see Reorg. Plan No. 6, of 1950, §§ 1, 2, 15 F.R. 3174, 64 Stat. 1263, set out in the Appendix to Title 5, Govern- ment Organization and Employees. § 260. Liquidated damages In any action commenced prior to or on or after May 14, 1947 to recover unpaid minimum wages, unpaid overtime compensation, or liq- uidated damages, under the Fair Labor Stand- ards Act of 1938, as amended [29 U.S.C. 201 et seq.], if the employer shows to the satisfaction of the court that the act or omission giving rise to such action was in good faith and that he had reasonable grounds for believing that his act or omission was not a violation of the Fair Labor Standards Act of 1938, as amended, the court may, in its sound discretion, award no liq- uidated damages or award any amount thereof not to exceed the amount specified in section 216 of this title. (May 14, 1947, ch. 52, § 11, 61 Stat. 89; Pub. L. 93–259, § 6(d)(2)(B), Apr. 8, 1974, 88 Stat. 62.) Editorial Notes REFERENCES IN TEXT The Fair Labor Standards Act of 1938, as amended, re- ferred to in text, is act June 25, 1938, ch. 676, 52 Stat. 1060, as amended, which is classified generally to chap- ter 8 (§ 201 et seq.) of this title. For complete classifica- tion of this Act to the Code, see section 201 of this title and Tables. AMENDMENTS 1974—Pub. L. 93–259 substituted ‘‘section 216 of this title’’ for ‘‘section 216(b) of this title’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1974 AMENDMENT Amendment by Pub. L. 93–259 effective May 1, 1974, see section 29(a) of Pub. L. 93–259, set out as a note under section 202 of this title. § 261. Applicability of ‘‘area of production’’ regu- lations No employer shall be subject to any liability or punishment under the Fair Labor Standards Act of 1938, as amended [29 U.S.C. 201 et seq.], on account of the failure of such employer to pay an employee minimum wages, or to pay an em- ployee overtime compensation, for or on ac- count of an activity engaged in by such em- ployee prior to December 26, 1946, if such em- ployer—