Supreme Court upholds ruling on private FLSA settlements
The Supreme Court denied a request Dec. 10 to review the Fifth Circuit Court of Appeals ruling that approves a private settlement of employees claims for unpaid overtime based on the Fair Labor Standards Act.
By Amanda McGrory-Dixon|December 14, 2012 at 06:36 AM
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The Supreme Court denied a request Dec. 10 to review the Fifth Circuit Court of Appeals’ ruling that approves a private settlement of employees’ claims for unpaid overtime based on the Fair Labor Standards Act. According to the plaintiffs, the circuit was split on this decision as noted by an opinion from the Eleventh Circuit Court of Appeals that mandates approval of any FLSA settlement from a court or the United States Department of Labor. However, Robert Sheeder, partner at international law firm Bracewell & Giuliani, is not surprised that the Supreme Court declined to hear this case.
In an earlier case, Martin vs. Spring Break ’83 Productions, the Fifth Circuit found that private compromise claims under the FLSA is permissible when there exists a bona fide dispute as a liability. Considering that this ruling backed the Fifth Circuit Court of Appeals’ decision, Sheeder expected the Supreme Court to move toward this direction.
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