Sixth Circuit Court rules employment agreement cannot limit statute of limitations under FLSA
An employee of a mail delivery company recently sued the business for violation of the Fair Labor Standards Act and the Equal Pay Act. The worker alleged she was paid less than a male co-worker for performing the same duties. She also claimed the business owes her overtime pay.
The worker began working for the company in 1997 with an employee agreement that stated, "To the extent the law allows an employee to bring legal action against Federal Express Corporation I agree to bring that complaint within the time prescribed by law or six months from the date of the event forming the basis of my lawsuit whichever expires first," according to Mondaq.
She sued the company in April 2009, more than six months following the issuance of her final paycheck in June 2008. The U.S. District Court dismissed her case on the basis of the employee agreement.
Boaz appealed to the Sixth Circuit, which overturned the initial ruling in her favor. The court determined the statutory period in the employee waiver violated her rights under the FLSA, which allows for a statute of limitations of two years for non-willful violations and three for willful ones, according to law firm Thomson Hine.
In addition to carefully drafting employee policies, making use of time and attendance software can help workplaces remain in accordance with federal labor laws by logging employee time.
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