Dees v. Hydradry
22 Fla. L. Weekly D 296 (M.D. Fla. 2010)
An employee brought suit against his employer to recover overtime compensation under the Fair Labor Standards Act (“FLSA”). Upon settling the action, the parties submitted a joint stipulation for dismissal. The court rejected the stipulation, ordering the parties to submit the settlement agreement to it for approval. In FLSA actions, the court must review any settlement to ensure the compromise is fair and reasonable to the employee and did not frustrate the implementation of the FLSA. The court further noted that such an agreement could not prospectively waive the employee’s FLSA rights, must award the employee’s counsel reasonable fees, and could not contain a confidentiality agreement, which would be in contravention to the purpose of the FLSA.