Chicago Business Litigation Lawyer Blog
Settling most cases is a difficult process, particularly when the parties dispute what exactly happened or when the underlying claim turns out to be smaller than anticipated. In Fair Labor Standards Act (“FLSA”) cases, the process can be even more difficult depending on the court’s interpretation of the FLSA’s enforcement provision, section 16, which permits the Department of Labor to supervise settlements.
Courts have reached differing interpretations regarding this statutory language and whether it requires DOL or judicial approval of all FLSA settlements. The parties to an FLSA case may wish to avoid having to submit a settlement agreement to the court to obtain approval before a case can be settled. Such reasons include a desire to keep the settlement terms confidential, the cost of obtaining judicial approval, and the time delay inherent in having to obtain judicial or DOL approval. The question that has long plagued litigants and attorneys alike is whether the parties can find a means of settling their matters without having to seek review, as they do with virtually every other kind of employment case. Continue reading ›