DOL and court approval not always required for FLSA suits
For the last 30 years or so, workplaces have operated under the assumption that Fair Labor Standards Act settlement cases require approval from the Department of Labor or a courtroom. While this is still the most common course for settling disputes over wages and overtime, recent cases have established a precedent for conditions in which it may be unnecessary to involve the court or the DOL.
The Martin v. Spring Break '83 Productions, L.L.C. case recently established that under certain circumstances, FLSA violation grievances can be handled internally. In 2009, unionized film employees working on Spring Break in Louisiana filed a complaint for lost wages. A union representative investigated their claims, and determined that it would not be possible to verify that the employees had worked the days and hours that they claimed. The film workers received compensation from the production company, but later filed a lawsuit, claiming that they had lacked the advisement of the Department of Labor in the proceedings.
The Fifth Circuit of Appeals denied their request, stating that in cases where a bona fide dispute can be registered, FLSA disputes handled between the employer and workers will be upheld as enforceable, provided the plaintiffs are fully aware of their rights.
This recent trend gives employers the opportunity to keep wage disputes out of the public eye. However, employers can avoid such disputes altogether by appropriately clocking employee time. Had the film production company properly utilized a time and attendance system, the entire situation may have easily have been avoided.
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