Settling wage case? Include confidentiality clause — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Settling wage case? Include confidentiality clause

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in Employment Law,Human Resources

Wage-and-hour cases can drag on—and sometimes turn into class-action lawsuits. That’s why settling early may make sense. But settlements can spawn even more lawsuits. To minimize that possibility, consider using a confidentiality clause.

Recent case: Nicole sued over unpaid time she said she spent doing administrative tasks before and after her shift. Her employer offered a settlement agreement containing a confidentiality clause barring lawyers and employees from talking to the media.

The court approved the settlement, noting that the agreement and all filings are publicly available, and that the confidentiality provision was nar­­rowly drawn to prohibit only statements to the media. Workers, the court noted, were free to discuss the case with friends, family, co-workers and others not affiliated with the media. (McGee v. Ann’s Choice, No. 12-2664, ED PA, 2014)

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