DANIEL C. IRICK, Magistrate Judge.
This cause comes before the Court for consideration without oral argument on the following motion:
Plaintiff filed this action pursuant to the Fair Labor Standards Act (FLSA) for unpaid overtime compensation. Doc. 1. The parties settled the case after Defendant filed its Answer and Plaintiff filed her answers to the Court's FLSA Interrogatories. Docs. 16; 21. The parties subsequently filed an Amended Joint Motion for Approval of Settlement, to which the settlement agreement was attached. Docs. 36; 36-1 (the Agreement). By Order dated April 11, 2019, the undersigned denied the motion without prejudice and directed the parties to file a renewed motion for settlement approval consistent with the Order. Doc. 38. The motion was denied because the parties referenced a separate "Confidentiality Agreement" that included a general release of "non-FLSA potential claims," but the Court was unaware of the exact nature of the agreement and the consideration paid to Plaintiff in return for the release. Id. Pending before the Court is the parties' Second Amended Joint Motion for Approval of Settlement Agreement (the Motion). Doc. 39. Instead of reattaching the Agreement, the parties refer the Court to the document previously filed at Doc. 36-1 (the Agreement). Doc. 39 at 2.
The parties seek review to determine whether the Agreement is a "fair and reasonable resolution of a bona fide dispute over Plaintiff's claim. In Lynn's Food Stores, Inc. v. U.S. Dep't of Labor, 679 F.2d 1350, 1352-53 (11th Cir. 1982), the Eleventh Circuit addressed the means by which an FLSA settlement may become final and enforceable:
Since the parties have submitted a motion, the Court must scrutinize the attached Agreement to determine if it is a fair and reasonable resolution of a bona fide dispute. See id. at 1354-55. In determining whether the Agreement is fair and reasonable, the Court should consider the following factors:
See Leverso v. SouthTrust Bank of Ala., Nat'l Assoc., 18 F.3d 1527, 1531 n.6 (11th Cir. 1994). There is a strong presumption in favor of settlement. See Cotton v. Hinton, 559 F.2d 1326, 1331 (5th Cir. 1977).
In addition to the foregoing factors, the Court must also consider the reasonableness of the attorney fees to be paid pursuant to the settlement agreement "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, 351-52 (11th Cir. 2009).
The parties contend that the Agreement reflects a reasonable compromise of the disputed issues. Doc. 39 at 3. According to the Motion, the parties state that there are issues as to whether Plaintiff is actually owed any unpaid wages under the FLSA. Id. Specifically, Defendant asserts that Plaintiff has been paid for all hours worked because she was owed a maximum of $5,384.16 in overtime, but Defendant "provided excess PTO payments to Plaintiff in the amount of $5,615.68." Id. The parties also state that during discovery a spreadsheet was produced reflecting that Plaintiff received holiday pay even though she did not work on the holiday and, therefore, no overtime was due during those weeks. Id. As such, Defendant asserts that it is entitled to a set-off. Id. Despite Defendant's position that Plaintiff has received pay for all hours worked, the parties agree that the settlement was negotiated and represents a full satisfaction of Plaintiff's claims. Id. The Agreement provides that Plaintiff will receive $1,500.00 for "any claim for wages" and an equal amount in liquidated damages. Doc. 36-1 at 2.
The undersigned finds that this is a fair and reasonable compromise based on the reasons the parties articulated for compromising the claim under the FLSA. Therefore, the undersigned
The Agreement reflects that Plaintiff's attorney will receive $3,000.00 in fees and costs. Id. The parties state in the Motion that the resolution of the overtime claim was negotiated "separate and apart from attorney's fees and costs (albeit not in seriatim) so that [Plaintiff's] recovery was not compromised by attorney's fees/costs." Doc. 39.
The parties' representation adequately establishes the reasonableness of the fees under the agreement. See Bonetti, 715 F. Supp. 2d at 1228. Therefore, the undersigned
In the Settlement Agreement, Plaintiff has agreed to release all claims against Defendant under the FLSA. Doc. 36-1 at 2-3. The limited scope of this release allays any concern that Plaintiff may be giving up an unknown, but valuable, claim that is wholly unrelated to the claims at issue in this case. See, e.g., Moreno v. Regions Bank, 729 F.Supp.2d 1346 (M.D. Fla. 2010); see also Bright v. Mental Health Res. Ctr., Inc., Case No. 3:10-cv-427-J-37TEM, 2012 WL 868804 (M.D. Fla. Mar. 14, 2012).
While this release regarding the FLSA claims is not problematic, as discussed in the Court's April 11, 2019 Order (Doc. 38), the Agreement also provides that the parties have entered into a separate "Confidentiality Agreement" which includes a general release. The Agreement references the "Confidentiality Agreement" in the following provision:
Doc. 36-1 at 1.
Even though the parties stated several times in the Amended Motion that Plaintiff received separate consideration for the release of all of her claims, the parties did not specify the amount or any terms. See Doc. 36. The undersigned found that since the exact nature of the general release and the consideration for the release were unknown, it could not evaluate if the release compromised the claim. Doc. 38.
In the current Motion before the Court, the parties clarify that "Plaintiff is to receive separate consideration in exchange for her release of any claims which could have arisen out of her employment with Defendant, for which a separate confidential agreement was executed. Plaintiff is to receive $1,000.00 for her release of any claims which could have arisen out of her employment with Defendant." Doc. 39 at 4. It is apparent that the parties negotiated this general release separately from Plaintiff's FLSA claim, resulting in an additional $1,000.00 to Plaintiff as consideration. In light of the clarification, the undersigned finds that the general release does not affect the overall fairness and reasonableness of the settlement. See Roman v. FSC Clearwater, LLC, (approving a settlement agreement providing $100.00 as separate consideration for a general release) report and recommendation adopted, 2017 WL 1552304 (M.D. Fla. May 1, 2017); Middleton v. Sonic Brands L.L.C., 2013 WL 4854767, at *3 (M.D. Fla. Sept. 10, 2013) (same).
Further, the Agreement does not contain any other provisions that are often found to undermine the fairness and reasonableness of an FLSA settlement, i.e., confidentiality and non-disparagement provisions. See Doc. 36-1. Indeed, the parties state in the Motion that "due to the public nature of the FLSA Settlement Agreement, the parties agree that the FLSA Settlement Agreement is not confidential in nature, and that there is no provision of confidentiality regarding same." Doc. 39 at 4.
Thus, the undersigned
Accordingly, it is respectfully