Celine Dion has settled a lawsuit with a disgruntled former employee who was seeking compensation for allegedly working overtime.

Keith Sturtevent took legal action against the singer and her manager husband Rene Angelil in June, claiming he was hired as a warehouse manager and made to work more than 40 hours a week on a regular basis at the couple's Florida home in 2009.

Sturtevent stated he was initially paid $50,000 a year, before earning a raise to $63,000 - but he claimed to have been labelled an 'exempt employee', meaning he was not entitled to overtime under U.S. law.

Dion's spokesperson challenged the accusations made by Sturtevent, who was fired in May due to poor performance, insisting his "handsome yearly salary" already covered any overtime he completed in his three years of service.

Sturtevent rejected an offer of vacation pay and a $10,000 severance package from Dion, but the star has now agreed a deal with her former employee and settled the matter out of court, according to TMZ.

The suit was dismissed on Aug. 30.