Case: Wage & Hour/Settlement Agreement (E.D. Cal.)

A federal district court in California approved a settlement agreement between the city of Davis and a group of current and former non-exempt employees who received cash instead of health benefits, having claimed that the city violated the Fair Labor Standards Act by not properly compensating the employees for overtime, in that the cash-in-lieu payments should have been included in the regular rate of pay used for calculating and paying overtime compensation. Bona fide disputes existed between the parties including whether the employees were entitled to recover liquidated damages, and the settlement was fair and reasonable because, among other things, ...