Private Settlement Agreements and General Releases NOT Enforceable To Resolve Unpaid Wage or Overtimes Claims.

Wage and hour lawsuits are still among the most frequent claims by current and former employees. Resolving such claims with out-of-court settlements cannot be guaranteed because the federal wage and hour law (“FLSA”), like many employment statutes or related regulations, does not allow employees to waive their rights to receive full relief without court approval or Department of Labor supervision. One judge in the Middle District of Florida cautioned that “an employer undertakes a private resolution of an FLSA dispute at his peril” because the employer remains liable for any unpaid wages, attorney’s fees, court costs and liquidated damages that may be “compromised” in such a settlement.

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