Truncating the Fair Labor Standards Act Limitations Period in Arbitration: A Prospective Waiver of Rights or a Procedural Tweak?

The statute of limitations contains elements of both substantive and procedural rights. Because the FLSA statute of limitations is intertwined with FLSA substantive rights and its application precludes effectuation of substantive rights, most courts conclude the FLSA statute of limitations is a nonwaivable individual right so that neither the individual nor the union may, by an arbitration agreement, shorten the limitations period. Unlike agreements to truncate statutes of limitations under other labor statutes, such agreements under the FLSA effectively extinguish employees' substantive rights. [...]of whether it is in the context of individual arbitration agreements, union-negotiated collective bargaining agreements, or agreements in the federal sector, such agreements are invalid as an impermissible diminution of substantive rights under the FLSA.