Case: Wage & Hour/Settlement Agreement (S.D.N.Y.)

A proposed $35,000 settlement between Aurora Vegetable Market Corporation and an employee alleging the market violated the Fair Labor Standards Act and state wage-and-hour and unlawful termination laws was rejected by a New York federal district court that found the agreement contained an overboard release provision. The provision required the employee to relinquish his rights to bring any other claims, including discrimination claims, against the market that were connected to his employment which rendered the settlement agreement neither fair nor reasonable, the court ruled.