Wage & Hour Litigation Blog

Category Archives: Settlement

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To Seek Or Not To Seek (Court Approval)? THAT Is The Question

Posted in Settlement

Co-authored by Rob Whitman, Howard Wexler, and Noah Finkel

Unlike most other causes of action, FLSA claims require court or agency approval before a release can be deemed fully valid and enforceable.  Are there scenarios where it makes sense for employers to “roll the dice” and settle a pending litigation without asking the court to bless the terms … Continue Reading

Run[a]way Recovery: Unpaid Modeling Agency Interns Set to Cash In

Posted in Misclassification/Exemptions, Settlement

Authored by Adam J. Smiley

A New York federal judge gave an initial thumbs-up last Thursday to what is believed to be the largest unpaid internship settlement on the books: $450,000.

Elite Model Management was sued by a former unpaid intern in February 2013 (See Complaint), claiming that Elite deliberately misclassified interns as non-employees who were not protected by … Continue Reading

How Much Does It Cost To Make A Wage And Hour Case Go Away?

Posted in Settlement

Authored by Laura E. Reasons

Well,  . . .  it depends.  A recent report, however, sheds some light on the subject.

NERA Economic Consulting has once again published its Trends in Wage Hour Settlements.  We previously reported on NERA’s 2012 and 2011 publications.

The 2013 update confirms what we all knew — that settlement of wage and hour litigation … Continue Reading

The Battle Wages On: Study Confirms Increase In Dollars To Settle Wage-Hour Claims

Posted in Settlement

Authored by Kevin Young

This year’s “Trends in Wage and Hour Settlements” report, by the National Economic Research Associates, has identified 467 million reasons—75 million more than in 2011—for employers to continue to take proactive measures to avoid litigation under state and federal wage-hour laws.  The report quantifies what most of our readers already know:  wage and hour cases continue … Continue Reading

Judge Says Courts No Longer Need To Play Big Brother To FLSA Settlements

Posted in Settlement

Co-authored by Noah Finkel and Giselle Donado

Parties might be able to privately settle their FLSA disputes without court approval — and without disclosing the amount — provided they don’t care if they obtain a valid release.

Finally a court has untangled the web of case law that often mistook the fact that a release of FLSA claims in a … Continue Reading

Former Athletics Department Intern Throws Flag On Hamilton College’s Pay Practices

Posted in Misclassification/Exemptions, Overtime, Settlement

Co-authored by Robert S. Whitman and Adam J. Smiley

In February, this blog reported on two FLSA collective actions filed by former unpaid interns for The Hearst Corporation and Fox Searchlight Pictures.  These interns claimed, respectively, that they should have been paid for work performed for about 20 magazines and on the production of the 2010 film “Black Swan.” 

Hot on the … Continue Reading

Could The Tide Be Turning On The Enforceability of Private FLSA Settlements?

Posted in Settlement

Co authored by Steve Shardonofsky and Noah Finkel

Earlier this week, the U.S. Supreme Court announced its decision to deny certiorari in Martin et al. v. Spring Break ’83 Productions, L.L.C. et al.  This decision leaves in place the Fifth Circuit’s ruling enforcing a private FLSA settlement—a first for any federal appellate court.

In Martin, four union-represented plaintiffs filed a … Continue Reading

High Court Asked To Review Private FLSA Settlements And Standard For Individual Liability Under The FLSA

Posted in DOL Enforcement, Settlement

Authored by Steve Shardonofsky

As we blogged here earlier this year, the Fifth Circuit in Martin et al. v. Spring Break ’83 Productions, L.L.C. et al.; No. 11-30671 (July 24, 2012) became the first federal appellate court to enforce a private FLSA settlement.  Now, the United States Supreme Court may get a chance to weigh in on this issue for … Continue Reading

If You Want Finality, Be Careful In Constructing Your Wage and Hour Settlement: Seventh Circuit Finds that Plaintiffs’ Reserved Right To Seek Incentive Rewards Permits Post-Settlement Appeal Of Class Decertification

Posted in Settlement

By:  Louisa Johnson

It is common for one or more named plaintiffs to bring a wage and hour lawsuit as a putative class or collective action but then settle with the defendant-employer on an individual basis.  This may happen because the named plaintiffs and defendant settle before a class certification motion is brought.  It may also happen because the named … Continue Reading

Fifth Circuit Enforces Private FLSA Settlement And Makes Its Own Summer Blockbuster

Posted in Defenses, Settlement

By: Steve Shardonofsky

Federal district and appellate courts historically have refused to enforce settlements and/or waivers of FLSA rights without Department of Labor or court approval.  We recently blogged here, for example, about a recent ruling from the Southern District of New York that rejected a proposed settlement of overtime claims because the proposed agreement contained a confidentiality clause.  In Martin Continue Reading