FLSA Claims Resolution Checklist (Employer)

Summary

This checklist enumerates the items you should be sure to include in settlement agreements that dispose of FLSA claims (pre-certification of a class or collective action). Employees may not freely waive the substantive protections of the Fair Labor Standards Act (FLSA). Rather, a settlement agreement that purports to waive FLSA claims must be fair to the employee and resolve a bona fide good faith dispute as to the amount of compensation owed, if any. The agreement will then stand a better chance of accomplishing the goal of waiving the FLSA claims and, more generally, will protect the employer's interests to the maximum extent possible.