MAC R. McCOY, Magistrate Judge.
This cause comes before the Court on the Joint Motion to Approve Settlement Agreement and to Dismiss with Prejudice (Doc. 28) and the Settlement Agreement and Release of All Wage Related Claims (Doc. 28-1) filed on February 1, 2017. Plaintiff and Defendants jointly request that the Court approve the parties' settlement of their Fair Labor Standards Act ("FLSA") issues. After review of the parties' submission, the Court recommends that the settlement agreement be approved.
To approve the settlement of an FLSA claim, the Court must determine whether the settlement is a "fair and reasonable resolution of a bona fide dispute" of the claims raised pursuant to the FLSA. Lynn's Food Store, Inc. v. United States, 679 F.2d 1350, 1355 (11th Cir. 1982); 29 U.S.C. § 216. There are two ways for a claim under the FLSA to be settled or compromised. Id. at 1352-53. The first, under 29 U.S.C. § 216(c), provides for the Secretary of Labor to supervise payments of unpaid wages owed to employees. Id. at 1353. The second way, under 29 U.S.C. § 216(b), is by a lawsuit brought by employees against their employer to recover back wages. Id. When employees file suit, the proposed settlement must be presented to the District Court for its review and determination that the settlement is fair and reasonable. Id. at 1353-54.
The Eleventh Circuit has found settlements to be permissible when the lawsuit is brought by employees under the FLSA for back wages because the lawsuit
Id. at 1354.
In this case, Plaintiff alleged that she was entitled "to unpaid wages owed as the result of off-the-clock hours that she allegedly worked while an hourly employee working in the office of Defendants' RV Park." (Doc. 28 at ¶ 2; see also id. at 5). Defendants, however, "vehemently disputed whether Plaintiff worked any off-the-clock hours, and asserted that any off-the-clock time was willfully hidden by Plaintiff when she submitted signed timesheets that did not include the alleged off-the-clock hours worked." (Id. at ¶ 2; see also id. at 5). Upon review, based on these contentions, the Undersigned finds that a bona fide dispute exists between the parties in this action.
Ultimately, the parties agreed to settle this action "to avoid the uncertainties of and costs of dispositive motions and trial." (Id. at 4). The Joint Motion and the parties' Settlement Agreement state the full terms of settlement. Specifically, Plaintiff will receive $9,500.00 for unpaid wages and an additional $9,500.00 for liquidated damages. (Doc. 28 at 5 and Doc. 28-1 at ¶ 2). Upon review, the Undersigned finds that the terms of the Settlement Agreement are reasonable as to wages and liquidated damages.
Additionally, the Joint Motion and Settlement Agreement indicate that Defendants agree to pay a total of $12,500.00 for attorneys' fees and costs. (Doc. 28 at ¶ 5; see also Doc. 28-1 at ¶ 2). As explained in Bonetti v. Embarq Management Company, "the best way to insure that no conflict [of interest between an attorney's economic interests and those of his client] has tainted the settlement is for the parties to reach agreement as to the plaintiff's recovery before the fees of the plaintiff's counsel are considered." 715 F.Supp.2d 1222, 1228 (M.D. Fla. 2009). The Court further stated that
Id.
In the present case, the amount of attorneys' fees was negotiated as a separate amount apart from the amount to be paid to Plaintiff. (Doc. 28 at 6; see also Doc. 28-1 at ¶ 2). Because attorneys' fees and costs were determined separately and apart from Plaintiff's recovery, the Undersigned finds that the settlement and attorneys' fees were agreed upon without compromising the amount paid to Plaintiff.
Without contradictory evidence, the Settlement Agreement and Release of All Wage Related Claims (Doc. 28-1) appears to be a fair and reasonable resolution of the parties' FLSA issues.
Accordingly, the Undersigned hereby