Settlement Agreement
(Employment Discrimination Collective Action) (ADEA)

Summary

This template is a settlement agreement in employment discrimination collective action (ADEA) that is intended for use in settling lawsuits asserting collective action age discrimination claims under the Age Discrimination in Employment Act (ADEA). This template includes practical guidance, drafting notes, and alternate and optional clauses. This template is based on federal law and does not address all potential state law distinctions; thus, you should check any relevant state and local laws. The ADEA generally adopts the collective action process contained in the federal Fair Labor Standards Act (FLSA) and requires plaintiffs to bring group actions as a collective action rather than a class action. This template addresses situations where the court has (1) not yet granted conditional certification of a collective action and (2) already granted conditional certification of a collective action and authorized the sending of notice of the collective action to potential class members. For more information on the collective action process, see Class or Collective Actions—1-9 Wages & Hours: Law and Practice § 9.02, sub. [3][b]. See also Conditional Collective Action Certification and Decertification Motions under FLSA Section 216(b) and Notice Requirements for FLSA Section 216(b) Collective Actions. For practice notes, templates, checklists, presentations, and videos that give you a starting point in preparing for various types of employment litigation, see Employment Litigation Resource Kit. Unlike the FLSA, which requires court or Department of Labor approval of settlements in most cases (see Settlements and Resolutions of FLSA Claims and Potential FLSA Violations), the ADEA does not require court approval of a settlement, provided that the requirements the parties comply with the requirements of the Older Workers Benefit Protection Act (OWBPA). For more information on the OWBPA, see Older Workers Benefit Protection Act (OWBPA): Compliance Tips. Collective action claims under the Equal Pay Act (EPA), which is part of the FLSA, are settled in the same manner as under the FLSA. For annotated FLSA collective action settlement agreements, which could apply to EPA claims as well, see Settlement Agreement (FLSA Section 216(b) Wage and Hour Collective Action) and Settlement Agreement (Hybrid Wage and Hour FRCP 23 Class Action and FLSA Section 216(b) Collective Action). Most non-ADEA employment discrimination group actions (such as Title VII, ADA, GINA, FMLA, and other similar statutes) follow the class action requirement of Rule 23 of the Federal Rules of Civil Procedure. For more information on Rule 23 settlements, see 5 Moore's Federal Practice - Civil Chapter 23.syn (see Section I.). For more information on settling employment discrimination claims, see Settlement Agreements: Initial Assessment, Drafting, and Negotiating Techniques (Pro-Employer). For information on settling Rule 23 wage and hour class actions, see Settlements of FRCP Rule 23 Wage and Hour Class Actions. For a video providing strategic considerations for employers when structuring settlements for employment discrimination claims, see Settlement Strategies for Employment Discrimination Claims (Pro-Employer) Video.