HR Management & Compliance

2nd Circuit Mandates Supervision over FLSA Private Settlements

By Zachary D. Morahan, JD

Most employers and their legal counsel are used to settling wage and hour claims in a simple and straightforward manner. Other than an agreement containing the appropriate terms and conditions, not much more was needed to settle such a claim before litigation began. With the exception of getting a case dismissed by stipulation, the same was true for cases that were settled after the litigation began.

However, the U.S. Court of Appeals for the 2nd Circuit—which covers Connecticut, New York, and Vermont—recently decided a case in which it held that either a district court or the U.S. Department of Labor (DOL) must approve a settlement resolving alleged violations of the Fair Labor Standards Act (FLSA).

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