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THE EMPLOYMENT LAW GROUP®

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Brooklyn Savings Bank v. O'Neil

DISCLAIMER: Our firm's past results do not predict or guarantee future success. Each case is unique. Read more

In Brief

Because of the unequal bargaining power between employees and employers, any agreement that waives an employee’s rights under the FLSA must be supervised by the courts or the Department of Labor or is void as a matter of public policy.

What Happened in Court

In consolidating three separate cases, the Supreme Court sought to determine the extent to which an employee can waive his or her rights under the FLSA. In each case, the employee signed a release of claims agreement with his employer in exchange for a sum that was likely less than what the employee could recover through successful litigation. The Court ultimately concluded that, due to the unequal bargaining power between employees and employers, any agreement that waives an employee’s rights under the FLSA must be supervised by the courts or the Department of Labor or is void as a matter of public policy.

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