Settlements of FLSA Section 216(b) Wage and Hour Collective Actions

Summary

This practice note describes the process for settling a collective action pursuant to § 216(b) of the Fair Labor Standards Act (FLSA) (29 U.S.C. § 216(b)) (§ 216(b)). Courts have interpreted § 216(b) as prohibiting an individual from waiving or releasing FLSA claims without approval from either the U.S. Department of Labor (DOL) or a court where the claim is pending. See Lynn's Food Stores, Inc. v. United States, 679 F.2d 1350, 1352–54 (11th Cir. 1982). This is unlike most other employment-related claims and individual wage claims under state laws that do not require court- or DOL-approval.