Shustarich v. Northern Belt & Conveyor, Inc.
- Laura Provinzino
- 0:24-cv-00448
- U.S. District Court · District of Minnesota
- 4
In Shustarich v. Northern Belt & Conveyer, Inc., Judge Provinzino approved the Fair Labor Standards Act settlement and dismissed the action with prejudice.
Daniel Shustarich, Northern Belt & Conveyer, Inc., and Gregg Hill. Shustarich receives $3,000 under the settlement, his attorneys receive $2,000, and the action is dismissed with prejudice; the agreement releases claims against Northern Belt.
What happened
In Shustarich v. Northern Belt & Conveyer, Inc., Daniel Shustarich sued his former employer and Gregg Hill over unpaid overtime, contract-related payments, and his termination after a work-related injury.
The parties agreed to settle the overtime claim for $5,000, with $3,000 going to Shustarich and $2,000 to his attorneys. They privately settled the remaining claims and asked the court to approve the overtime settlement and end the case.
Judge Laura M. Provinzino found that the settlement fairly resolved a genuine wage dispute and that the negotiated attorney fees were reasonable. The court granted the joint motion to approve the settlement and dismissed the action with prejudice.
The detailed version
- Shustarich v. Northern Belt & Conveyor, Inc. · No. 0:24-cv-00448
- Laura M. Provinzino
- Mar. 14, 2025
Background
Daniel Shustarich sued Northern Belt & Conveyer, Inc. and Gregg Hill, whom the opinion collectively calls Northern Belt. Shustarich alleged that Northern Belt violated the Fair Labor Standards Act (FLSA) by not paying him overtime for work exceeding 40 hours in a workweek. He also alleged breach of his employment contract based on unpaid overtime and failure to reimburse a cell phone plan, and alleged that Northern Belt violated Minnesota law by terminating him after he suffered a work-related injury.
Shustarich sought $2,812.50 in unpaid overtime, $2,812.50 in liquidated damages, and attorney fees and costs. The parties jointly moved for approval of their FLSA settlement and dismissal of the remaining claims, which they had settled privately. Under the agreement, Shustarich would receive $5,000: $3,000 paid directly to him and $2,000 paid to his attorneys. In exchange, he released all claims against Northern Belt.
Court’s Analysis
The court noted that courts disagree about whether every FLSA settlement requires judicial approval, and that the Eighth Circuit has not resolved that issue. The court nevertheless reviewed the proposed settlement under the approach used by district courts in the circuit.
The court found that the case involved a bona fide, or genuine, dispute because Shustarich alleged that he was not paid overtime and Northern Belt denied that allegation. The court also found that the parties were represented by experienced counsel, had exchanged enough information about the strengths and weaknesses of their positions, and understood that neither side was guaranteed to win. The court found no evidence that Northern Belt had improperly pressured Shustarich. It also found that the negotiated attorney fees were reasonable.
Disposition
Judge Laura M. Provinzino ordered that the Joint Motion for Approval of Settlement be GRANTED. The court also ordered that the action be DISMISSED WITH PREJUDICE and directed that judgment be entered accordingly.
Read the full 4-page opinion on CourtListener, the free public archive maintained by the Free Law Project.