Decoding Settlement Process For FLSA Claims At 2nd Circ.

By Nathan Oleson (November 28, 2017, 11:07 AM EST) -- For years, attorneys representing clients in Fair Labor Standards Act litigation have confronted a vexing problem: Having agreed on their own to resolve a dispute over wages owed under the FLSA, how can they make their agreement enforceable without going through the time and expense of getting a federal judge to sign off on it? This quandary arises because many courts interpret decades-old U.S. Supreme Court precedent to require that either the U.S. Department of Labor or a court approve the terms of any FLSA settlement before it is effective. The rule is intended to prevent employers from economically coercing employees into bargain settlements at rates of compensation below what the statute requires. But it also adds a significant layer of complexity to claims that employers often believe are of dubious quality and involve only a few thousand dollars in potential liability....

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