Filed: Dec. 13, 2017
Latest Update: Dec. 13, 2017
Summary: REPORT AND RECOMMENDATION 1 PHILIP R. LAMMENS , District Judge . Upon referral, this Fair Labor Standards Act ("FLSA") matter is before the Court on the parties' agreed motion for approval of the settlement agreement. (Doc. 22). Thus, the Court must determine whether the settlement between the parties 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
Summary: REPORT AND RECOMMENDATION 1 PHILIP R. LAMMENS , District Judge . Upon referral, this Fair Labor Standards Act ("FLSA") matter is before the Court on the parties' agreed motion for approval of the settlement agreement. (Doc. 22). Thus, the Court must determine whether the settlement between the parties 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...
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REPORT AND RECOMMENDATION1
PHILIP R. LAMMENS, District Judge.
Upon referral, this Fair Labor Standards Act ("FLSA") matter is before the Court on the parties' agreed motion for approval of the settlement agreement. (Doc. 22). Thus, the Court must determine whether the settlement between the parties 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." Id. at 1353 (citing Schulte, Inc. v. Gangi, 328 U.S. 108, 66 S.Ct. 925, 928 n.8, 90 S.Ct. 1114).
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
As set forth in the parties' settlement agreement (Doc. 22-1), Defendant will pay a total sum of $900 to resolve this matter, to include the following: (1) $350 to Plaintiff for alleged unpaid minimum wages and overtime compensation, (2) $350 in liquidated damages, and (3) $200 to Plaintiff's counsel for attorney's fees and costs. The parties were represented by experienced counsel, and the terms and conditions of the parties' settlement were the subject of arms-length negotiations between counsel. The parties' settlement agreement pertains only to Plaintiff's wage claims, regarding which there were numerous factual disputes. See Cooper v. Garda CL Se., Inc., No. 15-cv-1677-Orl-40KRS, 2015 WL 9244682, at *1 (M.D. Fla. Dec. 18, 2015)(finding reasonable a release of all claims existing prior to the execution of the settlement agreement that relate to the payment of wages and/or overtime for all hours worked, including, but not limited to, claims arising under the FLSA, the Florida Constitution and the Florida Minimum Wage Act). 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 $200 for attorney's fees and costs appears to be reasonable.2
III. Recommendation
Accordingly, I RECOMMEND that the Court GRANT the parties' agreed motion for approval of the settlement agreement (Doc. 22), as it is a fair and reasonable compromise of Plaintiff's FLSA claim and related wage claims.
