Rillera v. Andy Frain Services, Inc.

Background

The court was advised that the parties had reached a settlement in this Fair Labor Standards Act (FLSA) case. The caption identifies Samayia Rillera as suing on behalf of herself and others similarly situated in a proposed FLSA collective action, and identifies Andy Frain Services, Inc., and other defendants. The opinion does not provide the underlying wage claims or the settlement’s financial terms.

Settlement-review standard

The court explained that parties cannot privately settle FLSA claims without approval from the district court or the Department of Labor. The court must determine whether the proposed agreement is a fair and reasonable compromise. It must consider the total circumstances, including the plaintiff’s possible recovery, the burdens and costs of continued litigation, the risks faced by the parties, whether experienced counsel negotiated at arm’s length, and the possibility of fraud or collusion.

If the agreement provides for attorney’s fees, the court must separately assess whether those fees are reasonable. Counsel must submit evidence supporting the requested award, including contemporaneous billing records identifying each attorney’s date, hours, and work. The court also said it must closely examine any release, confidentiality, or non-disparagement provision and require support for each such provision.

Order

Judge Jessica G. L. Clarke ordered the parties to submit the settlement terms by August 1, 2024, along with a joint letter of no more than five pages explaining why the agreement is a fair and reasonable compromise. The parties must also submit fee documentation if the agreement includes attorney’s fees and legal support for any release, confidentiality, or non-disparagement provision. The order reminded the parties that they could consent to a magistrate judge’s jurisdiction to review and approve the settlement if all parties agreed. This order required additional submissions; it did not approve the settlement.