Fifth Circuit Court of Appeals Rules on FLSA Issue Involving Settlement
The Fifth Circuit Court of Appeals recently ruled on an issue regarding the Fair Labor Standards Act. Martin, et al. v. Spring Break ‘83 Prods., L.L.C., et al. No. 11-30671 (5th Cir. July 24, 2012), available at http://www.ca5.uscourts.gov/opinions/pub/11/11-30671-CV0.wpd.pdf.
A union representing workers involved in the production of a movie signed a settlement agreement with an employer. Pursuant to the agreement, the workers released their rights to pursue any FLSA claims against the employer in exchange for payments. In a lawsuit regarding the workers’ FLSA claims, the workers argued that the release of claims was invalid because individuals may not privately settle FLSA claims. The district court enforced the release, and the workers appealed.
On appeal, the Court held that the payments accepted by the workers pursuant to the settlement agreement were an enforceable resolution of the workers’ FLSA claims. The settlement agreement addressed a bona fide dispute about the amount of time the workers worked. It was not a compromise of the workers’ guaranteed FLSA substantive rights. The Court affirmed the grant of summary judgment to the employer.
Press Release Contact Information:
KEITH A. CLOUSE
Clouse Dunn LLP
214.220.3833 ( fax)
Other News / Press Releases
- Using Facebook in Employment-Related Litigation
- First Impression Case: Fifth Circuit Rules on Ministerial Exception to Employment Discrimination Law
- An Employer Asks: Do We Have to Train an Older Worker on a New Computer System?
- Hurricane Sandy Prompts Employers to Evaluate Their Policies
- Dallas, Texas Employment Lawyer: Get Ready for Election Day
- Points to Consider Before a Deposition in Your Employment-Related Lawsuit
- Dallas Noncompete Lawyer Discusses Evolution of Texas Noncompete Law
- Dealing with Unrealistic Settlement Expectations
- No Tricks, Just Treats. Planning a Halloween Party at the Office.
- Confused About What the FLSA Does NOT Require?