Radosti v. Hudson's Bay Company

Background

At a May 19, 2022 status conference, the parties advised the court that they had reached a settlement in this Fair Labor Standards Act (FLSA) case. The opinion does not provide the settlement amount or other terms.

Court’s Analysis

The court stated that FLSA claims could not be privately settled with prejudice without approval from the district court or the Department of Labor. The court therefore had to determine whether the proposed agreement was fair and reasonable. It identified five relevant considerations: the plaintiff’s possible recovery; the burdens and costs 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.

If the settlement included attorney’s fees, the court also had to separately assess whether those fees were reasonable. The parties were required to provide evidence supporting any fee award, including contemporaneous billing records showing each attorney’s date of work, hours spent, and work performed.

Order and Effect

The court ordered the parties to submit the settlement terms by May 27, 2022. It also ordered them to submit a joint letter of no more than five pages explaining why the agreement was a fair and reasonable compromise, including information about the five factors identified by the court. The order did not approve the settlement; it required additional information so the court could review it for compliance with the FLSA.

The court further ordered that, if settlement efforts failed, the joint pretrial order and any motions in limine would be due by June 3, 2022. The opinion does not state whether the settlement was later approved.