More and More Courts Are Eschewing Mandatory Approval of FLSA Settlements
Although recent district court opinions may signal a turning of the tide on the court-approval requirement for FLSA actions, the law in this area clearly is in a state of flux.
October 06, 2022 at 01:35 PM
8 minute read
The court-approval requirement for settlements under the Fair Labor Standards Act has long posed challenges for employers and employees alike. Since the U.S. Court of Appeals for the Eleventh Circuit's seminal decision in 1982 in Lynn's Food Stores v. United States holding that parties are required to obtain court approval of FLSA settlements in order to fully extinguish those claims, courts around the country largely have followed its requirements. As a result, in order to obtain a complete waiver of FLSA claims, parties either needed approval from a court or the U.S. Department of Labor.
This requirement creates a whole host of issues, oftentimes slowing down the process, increasing costs to the parties, and sometimes even derailing resolution. However, over the last several years, several federal courts increasingly have questioned this requirement, casting doubt on the continued vitality of Lynn's Food.
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