(1) For determinations involving minimum wage and overtime that are filed on or after October 1, 1993, penalties are calculated as follows:
(a) a penalty equal to 110% of the wages determined to be due to the employee will be imposed in all determinations issued by the department; but
(b) if none of the special circumstances of ARM 24.16.7556 apply the department will reduce the penalty to 55% of the wages determined to be due provided the employer pays the wages found due in the time period specified in the determination as well as a penalty equal to 55% of that amount.
(2) The penalty calculated according to this rule may be reduced only upon the mutual agreement of the parties and the department.
(3) Claims for minimum wage and overtime filed against employers covered by provisions of the Fair Labor Standards Act will be subject to the penalty provisions of that Act.