Under the Fair Labor Standards Act (“FLSA”), an FLSA claim brought in federal court may only be settled with supervision by the Department of Labor or approval by the District Court. Howard v. Philadelphia Housing Authority, Civil Action No. 15-44662 (E.D.P.A. 2016).
In Howard v. Philadelphia Housing Authority, Judge Eduardo C. Robreno denied a portion of a settlement agreement in an FLSA lawsuit because the release was overly broad. The specific provision at issue required Plaintiff to waive “any and all” claims that related to the termination, and was not limited solely to claims under FLSA or PA wage and hour laws. The Court recognized the language was too broad and extended to areas of law not raised in the lawsuit. If the language was approved, Plaintiff would have waived other rights that could arise from a wrongful termination that were not at issue in the initial lawsuit.