No matter how an employer choses to handle an FLSA complaint, it is important to know that the FLSA requires the Department of Labor to supervise all potential violation settlements. This means that employees who receive severance packages or conditioned settlement agreements that purport to release all employment-related claims, may have not effectively released all of their claims under the FLSA.
On Tuesday December 9, 2014, businesses everywhere were provided with a valuable tool in defending themselves from FLSA litigation. The Supreme Court ruled unanimously that a staffing agency was not required to pay workers at Amazon Warehouses for the time they spent waiting to go through a security checkpoint at the end of their shifts. The Plaintiffs alleged this process could take up to twenty five minutes. However, Kelly Cheeseman, the spokesperson for Amazon stated these allegations were entirely untrue, and Amazon has a global process to ensure the screenings do not take longer than ninety seconds. The workers were hired by a third party agency, Independent Employment, to retrieve and package inventory for shipment at Amazon warehouses. In order to combat employee theft, workerswere required to undergo a security screening at the end of the workday. These kinds of checks are common among retailers, as the industry loses an estimated $16 billion annually from theft.