What does 49 CFR 386.22 (Settlement agreements and their contents) require?

Short answer

49 CFR 386.22 requires a settlement agreement to contain specific information, including the statutory basis of the claim, a brief statement of the violations, and the amount claimed and paid. The agreement must also include a statement that it is not binding on the Agency until executed by the Field Administrator or their designee.

The rule says

"A settlement agreement shall be drawn and signed by the respondent and the Field Administrator or his/her designee. Such settlement agreement must contain the following: (i) The statutory basis of the claim; (ii) A brief statement of the violations; (iii) The amount claimed and the amount paid" (49 CFR 386.22(a)(1))

"A settlement agreement may contain any conditions, actions, or provisions agreed by the parties to redress the violations cited in the Notice of Claim or notice of violation." (49 CFR 386.22(a)(2))

"A settlement agreement accepted and approved by the Agency Decisionmaker or Administrative Law Judge is a Final Agency Order which is binding on all parties according to its terms." (49 CFR 386.22(a)(3))

In plain English

When negotiating a settlement agreement under 49 CFR 386. The agreement must also be signed by the respondent and the Field Administrator or their designee. If the agreement is accepted and approved by the Agency Decisionmaker or Administrative Law Judge, it becomes a Final Agency Order, binding on all parties. In practice, this means that the respondent must carefully review the agreement to ensure it meets all the requirements and is aware of the consequences of non-compliance.

What to do

• Ensure the settlement agreement includes all the required elements, such as the statutory basis of the claim and the amount paid.
• Review the agreement carefully to ensure it meets all the requirements and is aware of the consequences of non-compliance.
• Obtain signatures from the respondent and the Field Administrator or their designee.
• Submit the agreement to the Agency Decisionmaker or Administrative Law Judge for approval.