Summary

WHERE DEFENSE OF CIVIL SUITS BY EMPLOYEES FOR OVERTIME BENEFITS UNDER THE FAIR LABOR STANDARDS ACT OF 1938 IS ADMINISTRATIVELY DETERMINED TO BE MORE ADVANTAGEOUS TO THE GOVERNMENT THAN PAYMENT OF SUCH OVERTIME CLAIMS. PROPERLY SUBSTANTIATED AND APPROVED PAYMENTS MADE PURSUANT TO AGREEMENTS BY COST-PLUS-A-FIXED-FEE CONTRACTORS IN SETTLEMENT OF EMPLOYEES' CLAIMS ASSERTED UNDER THE PENALTY PROVISIONS OF SECTION 16 (B) OF THE FAIR LABOR STANDARDS ACT OF 1938 FOR NONPAYMENT OF APPLICABLE OVERTIME BENEFITS UNDER SECTION 7 OF THE ACT MAY BE REIMBURSED IF LESS THAN THE AMOUNTS WHICH WOULD HAVE BEEN RECOVERABLE IN COURT PROCEEDINGS IN THE EVENT OF ADVERSE JUDGMENTS. THE DECISION SETS FORTH THE EVIDENCE WHICH WILL BE REQUIRED IN SUPPORT OF THE INVOLVED PAYMENTS.