When it comes to labor law, the Fair Labor Standards Act (FLSA) is one of the most important pieces of legislation in the United States. The FLSA provides minimum wage and overtime protections to workers, and it also allows workers to bring collective actions against their employers for violations of the law. However, there is an important legal concept that employers and workers alike should be aware of when it comes to FLSA claims: tolling agreements.

What is a tolling agreement?

Simply put, a tolling agreement is an agreement between the parties involved in a legal dispute to temporarily suspend the statute of limitations or other deadlines related to the case. In the context of FLSA collective actions, tolling agreements are often used to give the parties more time to negotiate a settlement or to give potential plaintiffs more time to decide whether to join the collective action.

Why use a tolling agreement?

Tolling agreements can be advantageous for both employers and workers. For employers, tolling agreements can provide a way to avoid costly and time-consuming litigation by giving them more time to negotiate a settlement or to address any underlying issues that led to the FLSA claim. For workers, tolling agreements can provide additional time to investigate potential claims, to decide whether to opt-in to a collective action, or to negotiate a settlement that adequately compensates them for any wage and hour violations.

What are the potential pitfalls of tolling agreements?

While tolling agreements can be beneficial for both parties, they can also be risky. If a tolling agreement is not properly drafted or implemented, it can result in the loss of important legal rights. For example, if the tolling agreement is too broad or ambiguous, it may waive the right to pursue certain claims or to seek damages for certain violations. Similarly, if the agreement is not properly implemented, it may result in the loss of important procedural rights, such as the right to file a lawsuit or to participate in a collective action.

To avoid these pitfalls, employers and workers should consult with experienced labor law attorneys when drafting and implementing tolling agreements in the context of FLSA claims. An experienced attorney can help ensure that the agreement is properly drafted, that it protects the rights of both parties, and that it is implemented in a way that preserves important legal rights.

Conclusion

Tolling agreements can be a powerful tool for employers and workers involved in FLSA collective actions. However, they require careful drafting and implementation to avoid unintended consequences and to protect the legal rights of both parties. With the help of experienced labor law attorneys, tolling agreements can help employers and workers resolve wage and hour disputes in an efficient and fair manner.