Wage Claim Settlement Agreement

WAGE CLAIM SETTLEMENT AGREEMENT

This Wage Claim Settlement Agreement (the Agreement) is made and entered into as of the Effective Date: by and between Employer Name: Employer Address: and Claimant/Employee Name: Employee Address:

RECITALS

WHEREAS, Employee contends that Employer owes certain wages, penalties, interest, and other amounts arising from employment for the period beginning and ending (the Disputed Period), collectively the Claim; and

WHEREAS, Employer denies liability for the Claim but desires to compromise and settle all disputes relating to wages, hours, overtime, waiting time penalties, interest, statutory penalties, and related claims asserted or which could have been asserted by Employee through the Disputed Period; and

WHEREAS, the Parties wish to avoid the uncertainty, expense, and delay of further proceedings and desire to resolve fully and finally all matters between them on the terms and conditions set forth below.

NOW, THEREFORE

In consideration of the mutual promises and covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. DEFINITIONS

For purposes of this Agreement, the following terms shall have the meanings set forth below:

a. "Claim" means all wage-and-hour claims, causes of action, demands, liabilities, and damages of every kind and nature arising from, or related to, Employee's employment with Employer through the Effective Date, including without limitation claims for unpaid wages, overtime, rest and meal period premiums, waiting time penalties, interest, liquidated damages, penalties, attorney fees, costs, and all other relief.

b. "Released Parties" means Employer, its past and present parents, subsidiaries, divisions, affiliates, predecessors and successors, and each of their respective officers, directors, agents, employees, representatives, attorneys, insurers and assigns.

2. SETTLEMENT PAYMENT

a. In full settlement of the Claim, Employer agrees to pay Employee the total gross amount of $ (the Settlement Amount) according to the schedule and allocation set forth below.

b. Allocation: The Settlement Amount shall be allocated as follows (for tax and reporting purposes): wages $ ; interest/penalties $ ; liquidated damages/other $ .

c. Payment Terms: Employer will issue payment by payable to Employee (or Employee's counsel if agreed) within days of the Effective Date, but in no event later than . Payment is conditioned upon receipt of a fully executed release by Employee.

3. RELEASE

a. Upon receipt of the Settlement Amount, Employee, for himself/herself and for his/her heirs, executors, administrators, successors, assigns and agents, hereby fully and forever releases and discharges the Released Parties from any and all claims, demands, liabilities, causes of action, suits, obligations, and damages, whether known or unknown, asserted or unasserted, liquidated or unliquidated, arising out of or relating to the Claim through the Effective Date, including, without limitation, claims for wages, overtime, meal and rest breaks, penalties, interest, notice and waiting time penalties, punitive damages, statutory penalties, exemplary damages, attorney fees, costs and equitable relief.

b. The Parties intend this release to be a full and final compromise and settlement of disputed claims and it does not constitute an admission of liability by Employer, which expressly denies liability.

4. SCOPE OF RELEASE AND EXCEPTIONS

Notwithstanding the foregoing, nothing in this Agreement shall release (i) any rights or claims that cannot be released as a matter of law; (ii) claims arising after the Effective Date; (iii) Employee's rights to workers' compensation benefits; or (iv) rights to vested benefits under any retirement or health plan maintained by Employer. Employee acknowledges and agrees that the Release includes all wage-and-hour claims that were or could have been asserted through the Effective Date.

5. TAX TREATMENT

Employer and Employee agree that the allocation of the Settlement Amount among wages, interest, penalties, and other categories is for reporting and tax withholding purposes only. Employer will withhold taxes and make statutory withholdings as required by applicable law for amounts characterized as wages. Employee acknowledges that he/she is responsible for any tax liability on the Settlement Amount allocable to Employee and that Employee should consult a tax advisor concerning the tax consequences of this Agreement.

6. NO ADMISSION OF LIABILITY

The Parties agree that this Agreement is a compromise of disputed claims and that neither the execution nor performance of this Agreement constitutes an admission of liability, fault, or wrongdoing by Employer or any Released Party.

7. CONFIDENTIALITY

Except as required by law or as necessary to enforce this Agreement, the Parties agree to keep the terms and existence of this Agreement confidential and shall not disclose such information to any third party. Notwithstanding the foregoing, Employee may disclose the terms to his/her immediate family or tax or legal advisors who agree to keep such terms confidential.

Employee acknowledges the confidentiality obligations set forth in this section.

8. REPRESENTATIONS AND WARRANTIES

Each Party represents and warrants that it has full power, authority, and capacity to enter into this Agreement and to perform its obligations hereunder; that the person signing for each Party is duly authorized to execute this Agreement on behalf of that Party; and that the execution and delivery of this Agreement and the performance of such Party's obligations hereunder do not and will not violate any other agreement to which that Party is bound.

9. INDEMNIFICATION

Employee agrees to indemnify and hold harmless the Released Parties from and against any third-party claims, liabilities, losses or expenses arising out of any misrepresentation by Employee in connection with this Agreement, except to the extent such claims result from Employer's willful misconduct or fraud.

10. ATTORNEYS' FEES AND COSTS

Each Party shall bear its own attorneys' fees, costs, and expenses incurred in connection with the Claim and the negotiation and execution of this Agreement, unless otherwise agreed in writing.

11. NOTICES

Any notice required or permitted under this Agreement shall be in writing and shall be deemed given when delivered personally, sent by nationally recognized overnight courier, or three (3) business days after deposit in the United States mail, postage prepaid, to the address for each Party set forth below or to such other address as either Party may designate by written notice to the other.

12. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to principles of conflict of laws.

13. ENTIRE AGREEMENT; SEVERABILITY

This Agreement constitutes the entire agreement and understanding between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, negotiations, representations, and understandings, whether written or oral. If any provision of this Agreement is held to be invalid or unenforceable, such provision shall be severed, and the remaining provisions shall remain in full force and effect.

14. AMENDMENT; WAIVER; COUNTERPARTS

No amendment, modification, or waiver of any provision of this Agreement shall be effective unless in writing and signed by both Parties. No waiver by any Party of any breach or default shall be deemed a waiver of any other breach or default. This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.

15. REPRESENTATION REGARDING REVIEW

Employee represents that he/she has read this Agreement, understands its terms, has had the opportunity to consult with counsel of his/her choice, and signs this Agreement voluntarily and without duress. Employee acknowledges that he/she understands that by signing this Agreement he/she is releasing the Released Parties as set forth herein.

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