Flores Moreno v. JJ Food Market Corp.

Background

The parties jointly requested approval of a proposed settlement in this Fair Labor Standards Act (FLSA) case. Before approving an FLSA settlement, the court must examine whether it is a fair and reasonable compromise of disputed issues rather than an employer’s improper waiver of employees’ statutory rights.

Court’s analysis

The court considered the factors identified in the opinion, including the plaintiffs’ possible recovery, the burdens and expenses of continuing the litigation, the seriousness of the litigation risks, whether experienced counsel negotiated at arm’s length, and the possibility of fraud or collusion. The court also considered factors that can weigh against approval, such as similarly situated employees, the possibility that the circumstances could recur, a history of FLSA violations, and whether a more developed factual record would help resolve an important legal or factual issue.

The parties submitted the settlement agreement, plaintiffs’ counsel’s estimate of the damages that could be recovered at trial, counsel’s time sheets, and representations in a June 25, 2021 letter. The court also discussed the requirement that FLSA settlements receive approval from either a district court or the Department of Labor, as well as concerns about confidentiality provisions, general releases, and excessive attorney fees.

Ruling

Judge Laura Taylor Swain found that the proposed settlement—including its attorney-fee and expense-award component—was fair and reasonable and satisfied the requirements described in Cheeks v. Freeport Pancake House, Inc. The opinion does not state the settlement amount or the agreement’s specific terms. The memorandum order was dated June 28, 2021.