Severance Pay Can't Be Tied To Waiving FLSA Claims
May 21, 2008, 12:00 AM EDT
Law360 (May 21, 2008, 12:00 AM EDT) -- On April 30, a federal court issued a temporary restraining order prohibiting SunTrust Banks Inc. from requiring employees to waive claims under the Fair Labor Standards Act (“FLSA”) as a condition of receiving severance benefits offered in connection with the bank's work force reduction program (Allen v. SunTrust Banks, Inc., No. 1:06-CV-3075, 2008 WL 1925082 (N.D. Ga. April 30, 2008)).
This is a peculiarly important development that merits close attention given the wage-and-hour litigation storm afflicting employers nationwide at a time when business conditions are resulting...