FLSA Lawsuits can cost employers significant amounts of money, both in defense costs and paying claims, however, there is a way to avoid these costly lawsuits. A well drafted arbitration agreement that covers actions brought under the Fair Labor Standards Act (FLSA), and other state/federal laws, is essential to avoiding several kinds of lawsuits. An arbitration agreement is an agreement that your employees sign which obligates them to bring their issues to an arbitrator you select, rather than to court. Employees who represent Plaintiffs in FLSA, and other, cases, rarely wish to pursue any action that involves arbitration, because it requires a significant investment on the part of the attorney in a type of case usually taken on contingency. The significant investment comes in the form of a filing fee for the arbitration. A filing fee for arbitration can cost that attorney ten times what bringing a lawsuit costs, and most Plaintiff’s attorneys are hesitant to invest that type of money up front, especially because under a contingency agreement they are only paid if they win. It is rare to find a Plaintiff’s Lawyer who wants to bring any type of case to arbitration because of cost, but also because arbitrators picked by employers tend to favor employers. Courts will enforce arbitration clauses, especially in FLSA lawsuits, but they must be written properly, and written to cover actions properly brought under the FLSA. An insufficient arbitration agreement, or a poorly written arbitration agreement, may not be enforced by a court. For help in drafting a proper arbitration agreement that a court can uphold contact Joshua Sheskin at Lubell Rosen’s Broward County Headquarters. - By: Joshua H. Sheskin, Esq., 954-880-9500 - JHS@LubellRosen.com.