A settlement agreement for unpaid wages can help you recover money owed by an employer. However, it is a legally binding contract, and you should consult an experienced employment attorney to ensure that you are receiving all the wages promised to you before you sign the agreement.

At Rowdy Meeks Legal Group LLC, we handle unpaid wages cases including overtime violations. We also help with other pay claims and vigorously pursue your rights to legal pay for your work.

What is a Settlement Agreement for Unpaid Wages?

An unpaid wage settlement agreement is a legally binding contract between an employer and an employee. It is a way of resolving unpaid wage disputes without going to trial. Most unpaid wage settlement agreements prevent the employee from pursuing further legal action against the employer for the same unpaid wages.

Key Components of a Settlement Agreement

Specify the Nature of the Wage Dispute: The settlement agreement should specify the amount of unpaid wages the employee is trying to recover and explain the nature of the claim, such as unpaid overtime, minimum wage violation, or illegal paycheck deductions.

Terms of Settlement: The unpaid wage settlement will specify the amount of money the employer must pay the employee and any other terms the parties have agreed to as part of the settlement. These terms could include liquidated damages on the unpaid wages or reasonable legal fees paid by the employer.

Release of Claims Clause: Most settlements include a release of claims clause that an employee agrees to when he or she signs. This clause means the employee agrees to release the employer from further liability or legal claims related to unpaid wages. A release of claims clause prevents the employee from pursuing further legal action against the employer for unpaid wages.

Confidentiality: Many settlement agreements also include a confidentiality clause that restricts both parties from publicly discussing the settlement and its terms.

Implications of Signing a Settlement Agreement for Unpaid Wages

Signing a settlement agreement for unpaid wages has positive and negative implications.

Pros:

• Signing the agreement resolves an unpaid wage dispute without further legal action. Getting the money you are legally entitled to can be a relief when you’re already out of pocket.
• When both you and your employer agree to resolve your differences through a settlement, you avoid the time, expense, and uncertainty of litigation.
• Signing an unpaid wage settlement gives you immediate financial relief and provides you the opportunity to focus on your next job. 

Cons:

• Once you have signed the agreement, you forfeit your right to pursue additional legal action against your employer for unpaid wages.
• A confidentiality clause protects the employer because you can’t share details of the settlement with other employees impacted by unpaid wages.

Why You Need To Consult an Employment Attorney

A settlement agreement is a legally binding document, so you should have an experienced employment attorney help you understand it.

Employment attorneys specialize in unpaid wage and employment law, and have a deep understanding of the complexities surrounding unpaid wage claims. They can provide you with invaluable legal guidance, ensure that your rights are protected, and that you receive fair compensation.

If you negotiate a settlement with your employer, an experienced attorney can represent your interests during negotiations. They can advocate on your behalf, negotiate the settlement details, and ensure that the terms of the agreement are fair.

Rowdy Meeks Legal Group LLC: Nationally Recognized Employment Attorneys

You work hard and are entitled to the pay you have earned. We work hard at Rowdy Meeks Legal Group LLC to get you what you deserve. Many employers and attorneys fear going to trial; we do not.

You should immediately contact us if your employer is attempting to have you sign as settlement agreement for unpaid wages or if you want to pursue an unpaid wages case against your employer.