JOEL B. TOOMEY, Magistrate Judge.
Plaintiffs filed the instant action seeking unpaid overtime wages pursuant to the Fair Labor Standards Act, 29 U.S.C. §§ 201, et seq. ("FLSA") (Doc. 3). According to the Complaint, Plaintiffs were employed by Defendants as non-exempt workers who performed manual labor and flooring installation during the relevant time period. (Id. at 1.) However, Defendants missclassified Plaintiffs as independent contractors. (Id. at 3.) Plaintiffs regularly worked in excess of forty hours per week, and Defendants failed to pay them one and one-half times their regular rates of pay for the overtime hours worked, in violation of the FLSA. (Id. at 3, 5.) Plaintiffs sought compensation for all unpaid overtime compensation, liquidated damages, attorneys' fees and costs, and pre-judgment interest. (Id. at 5.) The parties now request that the Court approve their settlement of Plaintiffs' claims. (Doc. 11.)
Section 216(b) of the FLSA provides in part:
29 U.S.C. § 216(b).
"[I]n the context of suits brought directly by employees against their employer under section 216(b) . . . the district court may enter a stipulated judgment after scrutinizing the settlement for fairness." Lynn's Food Stores, Inc. v. United States, 679 F.2d 1350, 1353 (11th Cir. 1982). Judicial review is required because the FLSA was meant to protect employees from substandard wages and oppressive working hours, and to prohibit the contracting away of these rights. Id. at 1352. "If a settlement in an employee FLSA suit does reflect a reasonable compromise over issues, such as FLSA coverage or computation of back wages, that are actually in dispute," the district court is allowed "to approve the settlement in order to promote the policy of encouraging settlement of litigation." Id. at 1354. In short, the settlement must represent "a fair and reasonable resolution of a bona fide dispute over FLSA provisions." Id. at 1355. In addition, the "FLSA requires judicial review of the reasonableness of counsel's legal fees to assure both that counsel is compensated adequately and that no conflict of interest taints the amount the wronged employee recovers under a settlement agreement." Silva v. Miller, 307 F. App'x 349, 351 (11th Cir. 2009) (per curiam).
In Bonetti v. Embarq Management Co., the court analyzed its role in determining the fairness of a proposed settlement under the FLSA, and concluded:
715 F.Supp.2d 1222, 1228 (M.D. Fla. 2009). Other cases from this district have indicated that when attorneys' fees are negotiated separately from the payment to a plaintiff, "an in depth analysis [of the reasonableness of the fees] is not necessary unless the unreasonableness is apparent from the face of the documents." King v. My Online Neighborhood, Inc., Case No. 6:06-cv-435-Orl-22JGG, 2007 WL 737575, at *4 (M.D. Fla. Mar. 7, 2007).
The Agreements provide that Defendants will pay the following sums to Plaintiffs and their counsel: $5,000 to Robert Ortiz ($2,500 for unpaid wages and $2,500 for liquidated damages); $2,000 to Dauvonique Tisby ($1,000 for unpaid wages and $1,000 for liquidated damages); and $2,000 to Plaintiffs' counsel for attorneys' fees and costs ($1,000 for Robert Ortiz's claim and $1,000 for Dauvonique Tisby's claim). (Doc. 11 at 8, 16; Doc. 13 at 5-6.) The parties represent that Plaintiffs' attorney's fees and costs were agreed upon separately and without regard to the amount paid to Plaintiffs. (Doc. 11 at 2-3; Doc. 13 at 2, 8.)
The parties represent that the Agreements reflect a reasonable compromise of disputed issues, including primarily whether Plaintiffs were exempt independent contractors or non-exempt employees covered by the overtime provisions of the FLSA. (Doc. 11 at 1-2; Doc. 13 at 4.) The parties also disputed the scope of potential damages, the number of hours worked by Plaintiffs, and the accuracy of the subject time records. (Doc. 11 at 2; Doc. 13 at 4.) The Motion states that "the parties engaged in in-depth discussions and review of documents," and that the parties reached an agreement "[a]fter careful review and analysis of relevant documents and information, including but not limited to records exchanged during litigation." (Doc. 11 at 2.)
Plaintiffs initially estimated that Robert Ortiz was owed $8,580 for unpaid wages plus liquidated damages, and that Dauvonique Tisby was owed $3,600 for unpaid wages plus liquidated damages. (Doc. 13 at 5.) However, in light of the aforementioned disputes, Plaintiffs appear to be receiving a reasonable recovery. Additionally, Plaintiffs are represented by attorneys. Thus, the undersigned recommends that the settlement reflects "a reasonable compromise of disputed issues [rather] than a mere waiver of statutory rights brought about by an employer's overreaching." Lynn's Food, 679 F.2d at 1354.
Regarding fees and costs, the ultimate issues pursuant to Silva are "both that counsel is compensated adequately and that no conflict of interest taints the amount the wronged employee recovers." 307 F. App'x at 351. Moreover, the Court need not conduct an in-depth analysis of the reasonableness of the attorneys' fees and costs if the proposed settlement appears reasonable on its face and there is no reason to believe that Plaintiffs' recovery was adversely affected by the amount of attorneys' fees and costs to be paid to their counsel. See King, 2007 WL 737575, at *4.
As noted above, Plaintiffs' attorneys' fees and costs were agreed upon separately and without regard to the amount paid to Plaintiffs. (Doc. 11 at 2-3; Doc. 13 at 2, 8.) Additionally, there is no reason to believe Plaintiffs' recovery was adversely affected by the agreed-upon fees and costs. The amount of $2,000 for fees and costs appears reasonable on its face, and it appears that counsel are being adequately compensated for their work. Thus, both aspects of the Silva attorneys' fee inquiry are satisfied.
Therefore, it is respectfully
1. The Motion (
2. The Settlement Agreements and FLSA Releases (
3. This action be
4. The Clerk of Court be directed to terminate any pending motions and close the file.