NICHOLAS P. MIZELL, Magistrate Judge.
This matter comes before the Court on review of a Joint Motion to Approve Settlement and Memorandum in Support Thereof. (Doc. 21). Plaintiff Rosie Nance and Defendant Sally Beauty Supply, LLC request that the Court approve the parties' settlement of the Fair Labor Standards Act claims asserted in this case. After a careful review of the parties' submissions and the court file, the Court recommends approval of the proposed settlement.
This action was brought under the Fair Labor Standards Act of 1938, 29 U.S.C. § 201 et seq. In this Circuit, parties may not settle (by joint dismissal or otherwise) an FLSA action without providing the Court at least some information concerning the resolution of the claims—not even parties receiving vigorous representation from counsel—because "the FLSA, a statute famously designed to preempt in certain particulars the possibility of private agreement, remains immune to the unsupervised intrusion of a private agreement." Dees v. Hydrady, Inc., 706 F.Supp.2d 1227, 1237 (M.D. Fla. Apr. 19, 2010); see also id. at 1245 (statutory rights granted by the FLSA have a "private—public character") (quoting Brooklyn Savings Bank v. O'Neil, 324 U.S. 697, 708 (1945) (holding that employees may not waive any rights conferred by the FLSA when there is no dispute concerning both the applicability of the FLSA and the amount of unpaid wages)).
Thus, even a "full compensation" agreement by which all of plaintiff's claims for wages and liquidated damages are paid in full—plus costs and a reasonable attorney's fee—can be jointly dismissed by the parties only if they adequately assure the Court that neither an "exchange of another valuable consideration of any kind," nor the forbearance of any valuable right of the plaintiff, is included in the agreement or any "side deal." Id. at 1239-1240.
When there is anything short of a full compensation agreement, the parties' proposed agreement must be filed on the public docket and presented to the district court for approval.
Id. at 1241-42. The agreement may not prospectively waive any FLSA rights, and it must award employee's counsel a reasonable fee that does not taint the employee's recovery. Id. at 1243.
"If the parties are represented by competent counsel in an adversary context, the settlement they reach will, almost by definition, be reasonable." Dees, 706 F. Supp 2d at 1241. Nevertheless, the Court must scrutinize an FLSA settlement for fairness, including an evaluation of:
Id.
In the Complaint, Plaintiff alleges that she worked as a customer service representative at two locations for Defendant. (Doc. 1 at 3). Plaintiff claims that Defendant paid Plaintiff an hourly wage, yet she was required to make bank deposits off the clock and work during her lunch break. (Id.). Plaintiff also alleges that she worked in excess of forty (40) hours per week, but Defendant failed to pay her proper compensation for these additional hours. (Id. at 4). Defendant denies these allegations and argues that the amount of time allegedly worked was minimal. (Doc. 21 at 1). However, the parties were able reach a settlement during arbitration.
In evaluating the factors discussed in Dees to determine fairness and reasonableness, counsel for both parties are of the opinion that a settlement is appropriate after conducting a thorough investigation. (Doc. 21 at 4). The parties assert that there is no fraud or collusion. (Id. at 3). And, given the complexity, expense, likely duration of the litigation, and the probability of success, the parties also decided that these factors militate in favor of the proposed settlement. (Id.).
Even though a bona fide dispute exists between the parties, the parties successfully negotiated a settlement of Plaintiff's claims. (Doc. 21 at 1).
After an investigation and exchange of information, the parties agree to settle this matter with the following terms: (1) $1,575 for unpaid overtime wages; and (2) $1,575 for liquidated damages. (Doc. 21-1 at 3). The monetary terms appear to represent a fair and reasonable resolution of the dispute.
The proposed settlement also includes an agreement that Defendant pay Plaintiff's attorney's fees in the amount of $4,000. (Doc. 21-1 at 3). The parties state, "[a]s part of the [p]arties' settlement, Plaintiff's attorneys' fees and costs were at all times negotiated separately from the amounts claimed by Plaintiff for her underlying claims and are not a function of any percentage of recovery." (Doc. 21 at 4).
In the instant case, a settlement was reached, and the attorneys' fees were negotiated only after agreeing to the amounts to be paid to Plaintiff. (Doc. 21 at 5). Therefore, the proposed settlement of Plaintiff's attorneys' fees is reasonable and fair.
Upon consideration of the foregoing, it is recommended that the proposed settlement in this case is fair and reasonable and should be approved by the Court.
Accordingly, it is respectfully
Respectfully recommended in Chambers in Ft. Myers, Florida on September 17, 2019.
A party has fourteen days from this date to file written objections to the Report and Recommendation's factual findings and legal conclusions. A party's failure to file written objections waives that party's right to challenge on appeal any unobjected-to factual finding or legal conclusion the district judge adopts from the Report and Recommendation. See 11th Cir. R. 3-1.