DANIEL C. IRICK, Magistrate Judge.
This cause comes before the Court for consideration without oral argument on the following motion:
On May 23, 2016, Plaintiff filed a complaint against Defendant alleging a cause of action for violation of the overtime provisions of the Fair Labor Standards Act (the FLSA). Doc. 1. On June 27, 2016, Defendant filed its Answer and Defenses to Plaintiff's Complaint. Doc. 7.
On July 27, 2017, the parties filed a joint motion to approve settlement (the Motion), to which the parties attached their proposed settlement agreement (the Agreement). Docs. 27; 27-1. The Agreement provides that Defendant will pay Plaintiff $12,500.00 to settle Plaintiff's FLSA claim, $6,250.00 for unpaid wages and $6,250.00 for liquidated damages. Doc. 27-1 at 2. The Agreement further provides that Defendant will pay Plaintiff $12,500.00 in attorney fees and costs. Id. The parties request that the Court approve the Agreement and dismiss the case with prejudice. Doc. 27.
The settlement of a claim for unpaid minimum or overtime wages under the FLSA may become enforceable by obtaining the Court's approval of the settlement agreement.
See Leverso v. SouthTrust Bank of Ala., Nat'l Assoc., 18 F.3d 1527, 1531 n.6 (11th Cir. 1994). The Court may approve the settlement if it reflects a reasonable compromise of the FLSA claims that are actually in dispute. See Lynn's Food Stores, 679 F.2d at 1354. There is a strong presumption in favor of settlement. See Cotton v. Hinton, 559 F.2d 1326, 1331 (5th Cir. 1977).
The Court, in addition to the foregoing factors, 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 were represented by experienced counsel in this litigation, which involved disputed issues of liability under the FLSA. Docs. 1; 7; 27. These disputed issues included the rate at which Plaintiff's overtime would be calculated, whether Plaintiff was paid for all hours worked, whether Plaintiff's complaint was barred by the applicable statute of limitations, whether any alleged violations would be found to be willful, whether the Court would award liquidated damages in light of Defendant's "good faith" defense, and whether Plaintiff was exempt from the minimum wage and maximum hours provisions of the FLSA. Doc. 27 at 3-4.
In their Motion, the parties represented the following: that the parties have engaged in voluminous and extensive discovery resulting in an in-depth analysis of time sheets, pay records, corporate policy manuals, confidential corporate organizational documents, email records, and testimonial evidence obtained from eyewitnesses; that the parties engaged in lengthy settlement negotiations throughout the course of this litigation; that the parties, through counsel, met in person at the case management conference and engaged in numerous telephone conferences, culminating in a full-day mediation with mediator James Brown, Esq.; that discrete evidentiary issues existed concerning prior conduct and credibility of witnesses; that Plaintiff would have been required to demonstrate that Defendant had knowledge of the overtime allegedly worked; and that the settlement represents a reasonable compromise given the facts, risks, and disputed issues in this case.
Based upon the foregoing, the undersigned finds that $12,500.00 is a fair and reasonable settlement amount in this case. Accordingly, it is
Upon review of the Agreement, the undersigned finds the Agreement does not contain a general release. Doc. 27-1. However, the Agreement does contain a confidentiality provision.
Courts in this circuit routinely strike confidentiality provisions in FLSA settlement agreements as unenforceable and contrary to the legislative purpose of the FLSA. See, e.g., Ramnaraine v. Super Transp. of Fla.. LLC, 6:15-cv-710-Orl-22GJK, 2016 WL 1376358, at *3-4 (M.D. Fla. Mar. 18, 2016) (stating that confidentiality clauses contained in FLSA settlement agreements "thwart Congress's intent to ensure widespread compliance with the FLSA") (citations and internal quotations omitted), report and recommendation adopted, 2016 WL 1305353 (M.D. Fla. Apr. 4, 2016); Santiago-Valle v. The Transition House, Inc., 6:15-cv-715-Orl-40GJK, 2015 WL 9244681, at *1-2 (M.D. Fla. Dec. 18, 2015); Menjiva v. E & L Const. Serv., LLC, No. 6:15-cv-2057-Orl-31KRS, 2015 WL 3485991, at *3 (M.D. Fla. June 2, 2015); Pariente v. CLC Resorts and Devs., Inc., 6:14-cv-615-Orl-37TBS, 2014 WL 6389756, at *1-2, 5-6 (M.D. Fla. Nov. 14, 2014); Dees v. Hydradry, Inc., 706 F.Supp.2d 1227, 1242-43 (M.D. Fla. 2010) ("The district court should reject as unreasonable a compromise that contains a confidentiality provision, which is unenforceable and operates in contravention of the FLSA.").
Accordingly, it is
Under the Agreement, Plaintiff's counsel will receive a total of $12,500.00 as attorney fees and costs. 27-1 at 2. The parties represented that the attorney fees and costs were "negotiated separately and without regard to the amount that was paid to Plaintiff." Doc. 27 at 5. The settlement is reasonable to the extent previously discussed, and the parties' foregoing representation adequately establishes that the issue of attorney fees and costs was agreed upon separately and without regard to the amount paid to Plaintiff. See Bonetti, 715 F. Supp. 2d at 1228. Accordingly, pursuant to Bonetti, it is
Accordingly, it is
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.
Recommended.
Doc. 27-1 at ¶ 8.