Amanda Haverstick is Counsel in the Philadelphia office of Reed Smith LLP. She has practiced labor and employment law for nearly 20 years, defending companies in all forms of employment litigation and providing day-to-day advice on how to avoid such litigation. A significant portion of Amanda’s practice has been dedicated to FLSA collective actions, including defending a three-week federal district court jury trial in one such action involving misclassification claims by approximately 400 retail bank managers – resulting in a full defense verdict – and successfully petitioning the United States Supreme Court for certiorari in an employer’s challenge to class certification in an Illinois state wage law action under FRCP 23(b)(3) – resulting in the High Court’s vacating the certification award. Amanda may be contacted at [email protected].
In the first and second parts of this series, we introduced the special rules that federal courts apply when evaluating the legality of privately-negotiated settlement agreements in FLSA litigation and analyzed the permissible contents of the release clause therein. In this final installment, we discuss recent court opinions addressing the permissibility of nondisclosure terms in these agreements.
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Having introduced the special rules federal courts apply when evaluating the legality of privately-negotiated FLSA settlements, we now focus on the permissible scope of the release clause in these agreements, with the aim of assisting practitioners in drafting agreements that will receive prompt court approval and secure dismissal with prejudice of their underlying litigation.
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FLSA litigation has dominated federal court dockets for more than a decade, but little attention has been paid to the agreements used to resolve such litigation. Unique policy considerations mean special rules apply. In today's post, the first installment of this three-part series, we explain these rules and the rationale underlying them.
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