Phoen v. LiveRamp Holdings, Inc.

Background

Karen Phoen was employed by LiveRamp, Inc. as an accounts-payable accountant from June 17, 2019, until her employment ended on or about April 7, 2022. She sued under the California Labor Code and the Fair Labor Standards Act (FLSA), alleging that LiveRamp improperly classified her as exempt from overtime and failed to pay her overtime compensation.

LiveRamp disputed the claims. It asserted that Phoen was exempt from overtime and minimum-wage requirements, that her job duties did not require her to work more than 40 hours in a week or eight hours in a day, and that she did not actually work those hours. LiveRamp denied liability.

The parties jointly asked the court to approve their settlement and requested dismissal with prejudice of all claims.

Court’s Standard for Reviewing the Settlement

The court explained that FLSA overtime claims generally cannot be settled without supervision by the U.S. Department of Labor or a district court. The court therefore had to determine whether the settlement resolved a genuine dispute under the FLSA, whether it was fair and reasonable, and whether the requested fees and costs were reasonable.

Genuine Dispute

The court found genuine disputes about whether Phoen was properly classified as exempt. Phoen relied on her account-payable and bookkeeping duties, while LiveRamp argued that her work required discretion and independent judgment on significant matters.

The parties also disagreed about how many overtime hours Phoen worked. Phoen argued that bookkeeping software did not initially work effectively and caused her to work additional hours, sometimes more than 40 hours in a week. LiveRamp argued that her hours as a consultant were a more accurate measure and that the software reduced her workload beginning in 2020. The parties further disagreed about the evidence and method for calculating damages.

Based on these disagreements, the court found a bona fide dispute—a real dispute rather than merely an employer’s attempt to obtain a waiver of statutory wage rights.

Settlement Amount and Fees

The total settlement was $87,500. The court stated that possible FLSA damages ranged from zero to as much as $150,000, and found the settlement to be a reasonable compromise considering the risks of continued litigation. Approximately $58,333 was to be distributed to Phoen after fees and costs.

Counsel had agreed to receive 40% of any settlement but waived costs and reduced the fee to 33⅓%. The court found the agreed fees and costs reasonable.

Ruling and Required Next Steps

The court GRANTED the parties’ joint motion for settlement approval. It DIRECTED the parties to perform their obligations under the settlement agreement and to submit, within 30 days, a status report stating whether the settlement payments had been made. The parties were also DIRECTED to submit a stipulated judgment and dismissal at the same time. The opinion does not state that the dismissal itself had already been entered.