SPENCER FANE NEWS

July 19, 2010

For more information contact:

Michael F. Delaney

mdelaney@spencerfane.com

913-327-5177

Mike Delaney and Eric Kelly Co-Author Article About Judicial Approval & Settlement of FLSA Claims

Employers facing FLSA litigation will sometimes turn quickly to offers of judgment or settlement negotiations with named plaintiffs to minimize the costs of protracted litigation. For some employers, this presents an appropriate strategy. For others, this only invites further litigation with different plaintiffs. In any event, the private settlement of FLSA disputes requires careful consideration beyond settlement of the “typical” case. As a federal court in Florida recently held, “an employer undertakes a private resolution of an FLSA dispute at his peril.”

In Dees v. HydraDry, Inc., No. 8:09-cv-1405, 2010 WL 1539813 (M.D. Fla. Apr. 19, 2010), District Court Judge Steven D. Merryday rejected a stipulation of dismissal of an FLSA claim and reminded employers and their counsel of potential pitfalls in the settlement of FLSA claims. In particular, Judge Merryday held that “[a]n employee entitled to FLSA wages may compromise his claim only under the supervision of either the U.S. Department of Labor or a federal district court.”

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