Roman Lopez v. Parkoff Operating Corp.

Background

The parties informed the court that they had reached a settlement in this Fair Labor Standards Act case. Under the court’s explanation of the law, the parties could not privately settle the wage claims without approval from the district court or the Department of Labor. The court therefore had to determine whether the proposed settlement was fair and reasonable.

What the Court Required

The court ordered the parties to provide the settlement terms within 30 days. It also ordered them to submit a joint letter of no more than five pages explaining why the agreement fairly and reasonably compromises disputed issues. The letter must address, among other matters, the plaintiff’s 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 agreement provides for attorney’s fees, the parties must submit evidence establishing the factual basis for the fee award, including contemporaneous billing records identifying each attorney’s date of work, hours spent, and work performed. If the agreement contains a release, confidentiality provision, or non-disparagement provision, the parties must provide support for each provision, including relevant case law.

Disposition

The court ordered the parties to submit these materials so it could review the proposed settlement. The opinion does not state that the court approved or rejected the settlement. The court also reminded the parties that they could consent to a magistrate judge’s jurisdiction to review and approve the settlement if all parties agreed, and that withholding consent would have no adverse consequences. Judge Jessica G. L. Clarke signed the order.