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ARTICLE · 25 SEPTEMBER 2012

Beware Draconian USDOL Settlement Terms

Fisher Phillips LLP
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The scope of potential punishments in federal Fair Labor Standards Act lawsuits brought by the U.S. Labor Department apparently is being limited only by the imaginations of its lawyers.

United StatesEmployment and HR
John Thompson
John Thompson
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The scope of potential punishments in federal Fair Labor Standards Act lawsuits brought by the U.S. Labor Department apparently is being limited only by the imaginations of its lawyers.  A recent consent judgment against an operator of residential-care facilities for developmentally disabled adults suggests that employers should not be surprised by unorthodox USDOL settlement demands.

The court order agreed to in Solis v. Jasmine Hall Care Homes contained terms requiring the defendants to pay $850,000, to comply with the FLSA in the future, to accept particular interpretations of relevant FLSA principles, and to produce upon demand whatever documents USDOL decides to "request".  These provisions are within the reasonable parameters of FLSA enforcement.

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