Prior State Court Settlement Is No Bar To FLSA Overtime Claims, 5th Cir. Rules

Two former employees of a Texas mortgage firm may pursue Fair Labor Standards Act overtime pay claims against the firm despite an earlier general release they signed to settle a state court lawsuit over alleged breach of noncompetition agreements, the U.S. Court of Appeals for the Fifth Circuit ruled June 1 (Bodle v. TXL Mortg. Corp., 5th Cir., 14-20224, 6/1/15).

Reviving a lawsuit filed against TXL Mortgage Corp., the Fifth Circuit said the state court release doesn’t fit within a narrow exception to the general rule that employees can’t waive FLSA claims without Labor Department supervision or ...