Outside Counsel

Maximizing Confidentiality of Settlements of Individual Claims Under the FLSA

, New York Law Journal

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Brian D. Murphy of Sheppard, Mullin, Richter & Hampton writes: Employers often prioritize preserving the confidentiality of the terms of a settlement of a pending or threatened litigation. Given that confidentiality is frequently a key incentive to enter into a settlement, with respect to a great many claims, it is respected and permitted by the courts. Where a settlement concerns individual claims under the Fair Labor Standards Act, however, an employer faces steep challenges in securing confidentiality.

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