Alaska Employment Law

A private agreement to compromise a claim for unpaid overtime compensation under the AWHA is valid as to the unpaid OT, but invalid as to liquidated damages, unless the agreement is approved by either the Alaska Department of Labor or a court.   AS 23.10.110(j).  The Department or the court must review the agreement to determine if ”the employee expressly waives the right to receive liquidated damages” and if the terms are “fair to the parties.”   Id.  The Department must act “within 30 days of receipt.”  Id.   If the Department rejects the proposed agreement, its action is presumably subject to review by the Superior Court.

In DeSalvo v. Bryant, 42 P.3d 525 (Alaska 2002), the Court held that a reviewing court must make factual findings regarding AWHA coverage, exemptions, and perhaps the strength of the claim, at least where the parties dispute whether the employee asserts an AWHA claim.  

 Here’s an example of a proposed settlement agreement for ADOL review of an OT claim where the parties disputed the number of hours.