Acevedo v. E&M Logistics Staffing Inc.

Background

The parties advised the court that they had reached a settlement in principle in this action under the Fair Labor Standards Act (FLSA), the federal law governing matters including overtime pay. The opinion explains that an employer violating the overtime-pay requirement may owe both unpaid overtime and an equal amount as additional damages.

Required Settlement Submission

The court stated that when FLSA claims are settled and dismissed under Rule 41 of the Federal Rules of Civil Procedure, the settlement and any proposed attorney’s fee award must be reviewed for fairness. The court therefore ordered the parties to submit the settlement agreement and a joint letter by November 27, 2023. The letter must explain the basis for the proposed settlement and why it should be approved as fair and reasonable, referring to the factors identified in Wolinsky v. Scholastic, Inc. It must also address any incentive payment to Albaro Acevedo and any attorney’s fee award to his counsel, including supporting documentation when appropriate.

The court reminded the parties that they could consent to proceed for all purposes before the assigned Magistrate Judge, who would then decide whether to approve the settlement. If they chose that option, they had to file a fully executed consent form by the same deadline.

Settlement Terms the Court Addressed

The court stated that it would not approve a settlement agreement containing a confidentiality provision unless the parties showed case-specific reasons sufficient to overcome the public’s common-law right of access to judicial documents. It also stated that it would not approve a release or waiver covering unaccrued claims or claims unrelated to wage-and-hour matters unless the parties justified that broader provision with case-specific reasons.

The court further stated that a non-disparagement clause barring negative statements about the defendant must include an exception for truthful statements about Acevedo’s experience litigating the case, unless the parties showed case-specific reasons for omitting that exception. If the agreement contained any of these provisions, the parties were required to say whether they wanted the court to consider approving the agreement with the provisions removed. The court noted that it could approve or reject the agreement but could not rewrite it.

Disposition

The court ordered the settlement materials and joint letter to be filed by November 27, 2023. It did not approve or reject the settlement in this order. The Clerk of Court was directed to terminate ECF No. 15 as moot.