Minter v. Hess Corporation

Background

Jason Minter sued Hess Corporation individually and for others similarly situated under the Fair Labor Standards Act (FLSA). The court was advised that the parties had reached a settlement.

Legal standard

The court explained that parties may not privately settle FLSA claims 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 under the totality of the circumstances.

The court identified five factors relevant to that review: (1) the plaintiff’s possible recovery; (2) the extent to which the settlement would help the parties avoid the burdens and expenses of proving their claims and defenses; (3) the seriousness of the litigation risks; (4) whether experienced counsel reached the agreement through arm’s-length bargaining; and (5) the possibility of fraud or collusion. If the agreement included attorney’s fees, the court also had to separately assess whether those fees were reasonable.

Order

The court ordered the parties to provide the settlement terms by October 31, 2022, so the court could determine whether they were fair and reflected a reasonable compromise of disputed issues. The parties also had to submit a joint letter of no more than five pages explaining why they believed the settlement was fair and reasonable and addressing the five identified factors.

If the settlement included attorney’s fees, the parties had to provide evidence supporting the fee award. The court specified that this evidence should include contemporaneous billing records for each attorney showing the date, hours worked, and nature of the work. The order did not state the settlement amount or approve the settlement.