In Taunton v. Korens USA, Inc., Landon Taunton sued his employer, Korens USA, for not paying overtime for hours worked beyond 40 per week. He filed the lawsuit on behalf of himself and other employees in the same situation. Both sides asked the court to approve a collective action, allowing other affected employees to join, and to approve a settlement.
The court agreed, finding that the employees were similarly affected, and granted conditional certification. The proposed settlement covered 100% of unpaid wages and damages for Taunton and those who joined the case. A common fund was created to pay claims, attorney fees, and costs, with $8,500 set aside for legal expenses.
In return for the damages received, Taunton and the other potentially involved employees agreed to release their claims related to the acts alleged in the lawsuit, including wage and hour claims under the FLSA. Ultimately the court granted the joint motion and settlement agreement and further dismissed the case with prejudice.
Key lessons from this case:
- Unlike traditional class actions, FLSA collective actions require workers to affirmatively choose to participate by submitting written consents to the court. They are not automatically included.
- Settlement agreements often include releases, which prevent employees from bringing future claims that relate to the specific allegations in the lawsuit, such as unpaid overtime.
- Collective certification under the Fair Labor Standards Act (FLSA) gives employees who are similarly situated the chance to join a lawsuit and seek remedies for unpaid overtime wages.
Learn more about Alabama Labor Laws through our detailed guide.
