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Although You Signed a Severance Agreement, Can You Still Assert an Overtime Claim?


Can You Assert OvertimeIn the wake of the COVID-19 pandemic, many employers have laid-off employees and provided them with severance packages.  In these severance packages, employers agree to pay employees an agreed-upon sum in exchange for a release.  Usually, these severance agreements broadly release “any and all claims” the employee may have against the employer. These provisions are intended to (a) ensure employees do not assert any claims employees may have against their employers, and (b) shield employers from any liability for any potential claims the employee could assert.

But where claims for unpaid minimum wages and overtime under the Fair Labor Standards Act are concerned, this is not the case.  Although an employee may have signed a broad release; generally, the employee is still able to assert such claims.

Under the FLSA, unless a private settlement of a claim for minimum wages or overtime is approved by the United States Department of Labor or a Court, the settlement has no effect, and cannot be later enforced against an employee.  Therefore, although an employee may have signed a severance or other settlement agreement containing a general release, the release of the FLSA claim may be ineffective, and the employee may be able to pursue claims for unpaid wages against the employer.

If you have signed a severance agreement with your former employer, but feel you were not properly compensated, you may still be able to assert your claim for unpaid wages. Contact the Shavitz Law Group, P.A. at 800-616-4800 or info@shavitzlaw.com. We would be happy to assist you in a free consultation to discuss your employment concerns.

 

YOU EARNED IT, NOW LETS GO GET IT.

Gregg Shavitz, Shavitz Law Group, 951 Yamato Rd Ste 285, Boca Raton, FL and 800 3rd Ave, Suite 2800, New York, NY.  Lawyers licensed in states including FL, NY, NJ, and TX.  The choice of a lawyer is an important decision and should not be based on advertisements alone.

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