Trial Court Invalidates General Release of Overtime Claims

One of the tactics employers often use to get around overtime class actions is the standard general release upon termination. We have encounted a few of these, and employers generally use the release as a bargaining chip to try to minimize the settlement. Most do not try to test the validity of the release in court. Hence, we know of few actual court decisions in which such releases have been considered. The most recent was a San Mateo County case in which Judge Weiner held that the releases were not valid, allowing an overtime class action to proceed. The ruling includes a decent analysis of Labor Code § 206.5. We have a copy of the order if you'd like to read it.