Feliciano v. Metropolitan Transportation Authority

Background

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

Court’s analysis

The court explained that the parties could not privately settle FLSA claims with prejudice 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. It identified five factors for that review: the plaintiff’s possible recovery; the burdens and expenses the settlement would avoid; the seriousness of the litigation risks; whether experienced counsel negotiated the agreement at arm’s length; and the possibility of fraud or collusion.

The court also stated that any attorney’s-fee provision must be assessed separately. Counsel must provide a factual basis for the fee request, including contemporaneous billing records showing each attorney’s date of work, hours spent, and the nature of the work.

Order

The court ordered the parties to provide the settlement terms within the period stated as “thirty (45) days” in the order, so the court could evaluate whether they reflected a fair and reasonable compromise of disputed issues. The parties also had to submit a joint letter of no more than five pages explaining why the settlement was fair and reasonable, including information about the five identified factors. If the agreement included attorney’s fees, the parties had to provide supporting evidence. The court adjourned the January 10, 2020 status conference sine die, meaning without setting a new date. The order did not approve or reject the settlement.