Lynn’s Food Stores, Inc. v. United States
United States Court of Appeals for the Eleventh Circuit
679 F.2d 1350 (1982)
- Written by Kelsey Libby, JD
Facts
The United States Department of Labor (the DOL) (plaintiff) investigated Lynn’s Food Stores, Inc. (Lynn’s) (defendant) and determined that Lynn’s violated certain wage and hour requirements of the Fair Labor Standards Act (FLSA) and owed its employees back wages totaling about $10,000. After an unsuccessful settlement negotiation with the DOL, Lynn’s approached its employees directly and offered them $1,000 to be divided among the group in exchange for each employee’s waiver of any FLSA claim. Lynn’s employees never filed suit themselves and did not consult attorneys, and it is unclear whether they knew that their rights had been violated and they were owed back wages. Fourteen employees signed settlement agreements accepting their portion of the $1,000, and Lynn’s sought judicial approval of the settlements in the district court. The district court denied approval of the settlement agreements, and Lynn’s appealed.
Rule of Law
Issue
Holding and Reasoning (Goldberg, J.)
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