Settlement Agreement
(FRCP Rule 23 Wage and Hour Class Action)

Summary

This template is a settlement agreement for a wage and hour class action under Federal Rule of Civil Procedure 23 (Rule 23) for use in memorializing the settlement of a Rule 23 wage and hour class action suit. This template includes practical guidance, drafting notes, and alternate and optional clauses. This template is intended for private employers. It is based on federal law and does not address all potential state law distinctions; thus, you should check any relevant state and local laws. In drafting settlement agreements for Rule 23 wage and hour class actions, defendant-employers should bear in mind the factors that courts consider in assessing the fairness, reasonableness, and adequacy of a settlement and make sure that they have described how their settlement meets these criteria. To the extent that a case involves both state law wage and hour claims and FLSA claims, the settlement agreement would need to address the "opt-in" procedure applicable to FLSA claims as well as the "opt-out" procedure applicable to Rule 23 class actions. For resources that provide a starting point in preparing for various types of employment litigation, see Employment Litigation Resource Kit. For resources on defending against federal wage and hour investigations and claims, see Wage and Hour Claims and Investigations Resource Kit. For other wage and hour class action settlement templates, see Settlement Agreement (Hybrid Wage and Hour FRCP 23 Class Action and FLSA Section 216(b) Collective Action), Settlement Agreement (FLSA Section 216(b) Wage and Hour Collective Action), Class Action Settlement Agreement (Rule 23(b)(3)) (Federal). For more information on wage and hour class action settlements, see Settlements of FRCP Rule 23 Wage and Hour Class Actions, Hybrid Wage and Hour Section 216(b) FLSA Collective and Rule 23 Class Actions, and Settlements of FLSA Section 216(b) Wage and Hour Collective Actions. See also Wilcox, California Employment Law § 9.21 and Matthew Bender Practice Guide: CA Wages & Hours 7.34.