Reed Russell, a partner at Phelps Dunbar, says the 5th Circuit decision in Martin v. Spring Break '83 Productions is a welcome change from what he perceives as growing court intrusiveness on the settlement of Fair Labor Standards Act (FLSA ) claims.

“As FLSA litigation becomes ubiquitous, the position on FLSA settlements is evolving in some courts,” he says. “They not only require court approval [of the settlement], but some judges refuse to allow settlements to be confidential, and some refuse to allow a release of claims [under other statutes] beyond the FLSA . The level of intrusiveness by courts in examining private settlements negotiated by counsel creates a barrier to resolving claims.”

Russell notes that confidentiality of FLSA settlements is particularly important to employers because they know the plaintiffs bar is monitoring lawsuits and may file copycat claims where they know a previous case has been resolved.

Reed Russell, a partner at Phelps Dunbar, says the 5th Circuit decision in Martin v. Spring Break '83 Productions is a welcome change from what he perceives as growing court intrusiveness on the settlement of Fair Labor Standards Act (FLSA ) claims.

“As FLSA litigation becomes ubiquitous, the position on FLSA settlements is evolving in some courts,” he says. “They not only require court approval [of the settlement], but some judges refuse to allow settlements to be confidential, and some refuse to allow a release of claims [under other statutes] beyond the FLSA . The level of intrusiveness by courts in examining private settlements negotiated by counsel creates a barrier to resolving claims.”

Russell notes that confidentiality of FLSA settlements is particularly important to employers because they know the plaintiffs bar is monitoring lawsuits and may file copycat claims where they know a previous case has been resolved.