Employers May Rethink Settlement Agreements In 2nd Circ.

Law360, New York (August 31, 2015, 12:05 PM EDT) -- Nicholas M. Reiter

Brian J. Turoff Wage-and-hour litigants often struggle with whether to seek judicial or U.S. Department of Labor approval of their settlement agreements. Plaintiffs and defendants alike typically prefer private, out-of-court settlements to maintain the confidentiality of their settlement terms and to avoid further motion practice before the court. In Cheeks v. Freeport Pancake House Inc., Case No. 14-299-cv, decided Aug. 7, 2015, the Second Circuit resolved a conflict among district courts regarding the enforceability of out-of-court settlements for claims under the Fair Labor Standards Act. The opinion makes clear that defendants who settle federal wage-and-hour claims out of...

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