Editors’ Note: This article has been updated to reflect a Correction.
Wage and hour law practitioners who negotiate settlements of filed claims often consider the ramifications of a court-supervised settlement. While a supervised settlement helps to ensure enforceability, it opens up the terms of the agreement to judicial scrutiny and possible rejection. A recent federal case from New York may encourage a growing trend to reach private, non-supervised settlements. Considerations must be given to the risks associated with private settlements, including subsequent judicial rejection of the parties’ agreement.
