Johnson v. Body & Pole, Inc.

Background

The plaintiffs are Meghan Piper Johnson, Rebecca Pardue, and Rodenellie Pluviose, on behalf of themselves and other similarly situated people. The defendants are Body & Pole, Inc. and Kyra Johannesen. The opinion states that the parties reached a settlement in a case brought under the Fair Labor Standards Act (FLSA).

Settlement-review standard

The court explained that FLSA claims cannot be privately settled without approval from the district court or the Department of Labor. The court must determine whether the proposed settlement is fair and reasonable by considering the totality of the circumstances, including:

- the plaintiffs’ possible recovery; - the extent to which settlement would avoid the burdens and costs of proving the claims and defenses; - 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 a fee award, including contemporaneous billing records showing, for each attorney, the date, hours worked, and nature of the work.

Order

The court did not approve the settlement in this order. It ordered the parties, within 30 days, to submit the settlement terms so the court could determine whether they comply with the FLSA and reflect a reasonable compromise of disputed issues. The parties must also submit a joint letter of no more than five pages explaining why they believe the settlement is fair and reasonable, including information about the listed factors. If the agreement includes attorney’s fees, the parties must submit evidence supporting the award.