Angel Espinobarros v. El Encanto De Lola 2 LLC

Background

The parties told the court that they had reached a settlement in this Fair Labor Standards Act (FLSA) case. The opinion does not state the settlement amount or other terms.

Court’s analysis

The court explained that FLSA claims generally cannot be privately settled without approval from the district court or the Department of Labor. To approve the settlement, the court must decide whether it is fair and reasonable based on the total circumstances. The listed considerations include the plaintiffs’ possible recovery, the burdens and expenses the settlement may avoid, the litigation risks, whether experienced counsel negotiated at arm’s length, and the possibility of fraud or collusion.

If the settlement provides for attorney’s fees, the court must separately assess whether those fees are reasonable. Counsel must provide a factual basis for the award, including contemporaneous billing records identifying each attorney’s date of work, hours spent, and work performed. The court also must closely examine any release, confidentiality, or non-disparagement provision and require support for each provision, including relevant case citations.

Order

Judge Jessica G. L. Clarke ordered the parties to provide the settlement terms within 30 days so the court can determine whether they are fair and reflect a reasonable compromise of disputed issues. The parties must also submit a joint letter of no more than five pages addressing the five listed fairness factors and other relevant information. If applicable, they must submit evidence supporting attorney’s fees and support for any release, confidentiality, or non-disparagement provision. The court also reminded the parties that they may consent to a magistrate judge’s jurisdiction to review and approve the settlement if all parties agree. The order does not itself approve or reject the settlement.