Filed: May 20, 2019
Latest Update: May 20, 2019
Summary: REPORT & RECOMMENDATION 1 PHILIP R. LAMMENS , Magistrate Judge . This Fair Labor Standards Act ("FLSA") matter is before the Court on the parties' joint motion for approval of settlement. (Doc. 52). The Court must determine whether the settlement between Plaintiff, Alana Hanshaw, and Defendants, Veterans & Medicaid Planning Group, PLLC and Eric Millhorn, is a "fair and reasonable resolution of a bona fide dispute" over Fair Labor Standards Act (FLSA) issues. See Lynn's Food Stores, Inc. v
Summary: REPORT & RECOMMENDATION 1 PHILIP R. LAMMENS , Magistrate Judge . This Fair Labor Standards Act ("FLSA") matter is before the Court on the parties' joint motion for approval of settlement. (Doc. 52). The Court must determine whether the settlement between Plaintiff, Alana Hanshaw, and Defendants, Veterans & Medicaid Planning Group, PLLC and Eric Millhorn, is a "fair and reasonable resolution of a bona fide dispute" over Fair Labor Standards Act (FLSA) issues. See Lynn's Food Stores, Inc. v...
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REPORT & RECOMMENDATION1
PHILIP R. LAMMENS, Magistrate Judge.
This Fair Labor Standards Act ("FLSA") matter is before the Court on the parties' joint motion for approval of settlement. (Doc. 52). The Court must determine whether the settlement between Plaintiff, Alana Hanshaw, and Defendants, Veterans & Medicaid Planning Group, PLLC and Eric Millhorn, is a "fair and reasonable resolution of a bona fide dispute" over Fair Labor Standards Act (FLSA) issues. See Lynn's Food Stores, Inc. v. United States, 679 F.2d 1350, 1354-55 (11th Cir. 1982).
I. LEGAL STANDARDS
If a settlement is not one supervised by the Department of Labor, the only other route for compromise of FLSA claims is provided in the context of suits brought directly by employees against their employer under section 216(b) to recover back wages for FLSA violations. "When employees bring a private action for back wages under the FLSA, and present to the district court a proposed settlement, the district court may enter a stipulated judgment after scrutinizing the settlement for fairness." 679 F.2d at 1353.
The Eleventh Circuit has held that "[s]ettlements may be permissible in the context of a suit brought by employees under the FLSA for back wages because initiation of the action by the employees provides some assurance of an adversarial context." Id. at 1354. In adversarial cases:
The employees are likely to be represented by an attorney who can protect their rights under the statute. Thus, when the parties submit a settlement to the court for approval, the settlement is more likely to reflect a reasonable compromise of disputed issues than a mere waiver of statutory rights brought about by an employer's overreaching. 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; we allow the district court to approve the settlement in order to promote the policy of encouraging settlement of litigation.
Id.
II. DISCUSSION
The parties participated in a mediation conference on May 9, 2019 and agreed to resolve their claims by settlement. (Doc. 51). Defendant will pay a total of $35,000, which includes 1) $10,00 for Plaintiff's alleged unpaid overtime, 2) $10,000 in liquidated damages, and 3) $15,000 in attorney's fees and costs.
The parties were represented by experienced counsel, and both the terms and conditions of the parties' settlement were the subject of arms-length negotiations between counsel. The settlement amount was based on information learned through the exchange of Plaintiff's statement of claim, pay records, and time records. The parties have determined that it is in their respective best interest to conclude the dispute and issues alleged by a fair, full and complete payment and satisfaction of the claims of Plaintiff, without continuing this lawsuit. The parties agree that that the settlement is fair and reasonable.
With respect to the agreed-to sum for attorney's fee and costs, the parties represent that they were negotiated separately from Plaintiff's recovery. See Bonetti v. Embarq Mgmt.Co., Case No. 6:07-cv-1335, 2009 WL 2371407 (M.D. Fla. Aug. 4, 2009). Under the circumstances, I submit that the amount of $15,000 for attorney's fees and costs appears to be reasonable.2
III. RECOMMENDATION
Accordingly, it is RECOMMENDED that the parties' joint motion for approval of the settlement agreement be GRANTED (Doc. 52), as it is a fair and reasonable compromise of Plaintiff's FLSA claim.
Recommended.
