Settlement Between Labor Union and Employer for FLSA Violations Binding On Employee
Production technicians working on Spring Break '83 filed union grievances for FLSA wage and hour violations alleging that they were not paid for hours worked. The union that represents these individuals reached a settlement with the company releasing the employees right to pursue these claims, which was never approved by federal court or DOL. Before this settlement was signed, four of the individuals sued the company. The 5th Circuit held that this settlement was binding on the employees because there had been a bona fide dispute about the hours worked instead of a compromise of the FLSA rights by the union.