Last week we started looking at the pitfalls of settling wage and hour claims out of court. Specifically, we saw that most federal courts interpret the FLSA-- as requiringflsaclockblrdotcom that wage and hour settlements be approved by the US Department of Labor or a court to be enforceable. That certainly seems, well, un-settling at best. Do you really have to wait to be sued or the target of a DOL complaint or investigation--where you are liable for unpaid overtime and an equal amount in liquidated damages-- and the employee's legal fees? In that case, why settle at all? Is there anything you can do to get the target off your back?
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