29 U.S.C. § 253: Compromise and waiver

Summary

Allows settling old wage claims. Claims under the Fair Labor Standards Act, the Walsh‑Healey Act, or the Bacon‑Davis Act that arose before May 14, 1947, and any lawsuits to enforce them (filed before, on, or after May 14, 1947) may be settled in whole or in part if there is a genuine dispute about how much the employer owes. A settlement cannot pay less than the law’s minimum hourly wage or less than 1.5 times that wage for overtime. An employee may give up (waive) their right to liquidated damages under the Fair Labor Standards Act for work done before May 14, 1947. Unless there was fraud or force, a valid settlement or waiver fully ends the claim and stops any later lawsuit. These rules also apply to settlements or waivers made earlier. “Compromise” includes adjustment, settlement, and release.

Title 29, §253

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(a)Compromise of certain existing claims under the Fair Labor Standards Act of 1938, the Walsh-Healey Act, or the Bacon-Davis Act; limitations

Any cause of action under the Fair Labor Standards Act of 1938, as amended [29 U.S.C. 201 et seq.], the Walsh-Healey Act, or the Bacon-Davis Act, which accrued prior to May 14, 1947, or any action (whether instituted prior to or on or after May 14, 1947) to enforce such a cause of action, may hereafter be compromised in whole or in part, if there exists a bona fide dispute as to the amount payable by the employer to his employee; except that no such action or cause of action may be so compromised to the extent that such compromise is based on an hourly wage rate less than the minimum required under such Act, or on a payment for overtime at a rate less than one and one-half times such minimum hourly wage rate.

(b)Waiver of liquidated damages under Fair Labor Standards Act of 1938

Any employee may hereafter waive his right under the Fair Labor Standards Act of 1938, as amended [29 U.S.C. 201 et seq.], to liquidated damages, in whole or in part, with respect to activities engaged in prior to May 14, 1947.

(c)Satisfaction

Any such compromise or waiver, in the absence of fraud or duress, shall, according to the terms thereof, be a complete satisfaction of such cause of action and a complete bar to any action based on such cause of action.

(d)Retroactive effect of section (e) “Compromise” defined

The provisions of this section shall also be applicable to any compromise or waiver heretofore so made or given.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Fair Labor Standards Act of 1938, as amended, referred to in subsecs. (a) and (b), is act June 25, 1938, ch. 676, 52 Stat. 1060, which is classified generally to chapter 8 (§ 201 et seq.) of this title. For complete classification of this Act to the Code, see section 201 of this title and Tables. The Walsh-Healey and Bacon-Davis Acts, referred to in subsec. (a), are defined for purposes of this chapter in section 262 of this title.

§253 Compromise and Waiver

Summary

Title 29, §253

Notes & Related Subsidiaries

Editorial Notes

References in Text

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