Insights
Leanne Lane Coyle Examines Trend of Courts Eschewing the Judicial Approval Requirement for FLSA Settlements for the National Law Journal
In the October 6, 2022 article, "More and More Courts Are Eschewing Mandatory Approval of FLSA Settlements," for the National Law Journal, co-author Leanne Lane Coyle examines the potential trend of courts eschewing the mandatory court-approval requirement for settlements under the Fair Labor Standards Act (FLSA).
Noting that the court-approval requirement, "creates a whole host of issues," the author explains:
"Although recent district court opinions may signal a turning of the tide on the court-approval requirement for FLSA actions, the law in this area clearly is in a state of flux. Indeed, several district court opinions within the Third and Sixth circuits have continued to follow Lynn's Food in reviewing and approving FLSA settlement agreements when requested...by the parties."
"While certain district courts have cast doubt on the court-approval requirement, there still is no binding precedent in the First, Third, Fourth, Sixth, Seventh, Eighth, Ninth, Tenth, and D.C. circuits. In those jurisdictions, employers should proceed cautiously as they navigate the changing landscape."