Acevedo v. E&M Logistics Staffing Inc.

Background

Albaro Acevedo brought this action under the Fair Labor Standards Act (FLSA), a federal law governing wage and hour requirements. On November 9, 2023, the court was informed that the parties had reached a settlement in principle. The court directed the parties to explain why the proposed settlement should be approved and to address the factors used by courts in reviewing FLSA settlements.

The parties submitted a joint letter. Acevedo’s counsel requested $10,318 in attorney’s fees and costs, described as 34% of the $30,000 settlement amount. Counsel also submitted contemporaneous billing records showing 21.75 hours devoted to the case at a fee-shifting hourly rate of $500.

Court’s analysis

The court found the settlement fair and reasonable in light of the nature and scope of Acevedo’s claim and the risks and expenses of additional litigation. The court noted that concerns about employees being pressured into waiving FLSA claims are less significant when the plaintiff no longer works for the defendant, as the court said was true here.

The court stated that attorney’s fees equal to one-third of the recovery were appropriate, consistent with decisions generally approving fees between 30% and 33% in the court’s circuit. The billing records also supported the proposed award. The court expressly stated that it was not making a finding about whether the $500 hourly rate was reasonable, although other courts had approved that rate in similar circumstances.

Disposition

The court approved the settlement subject to the condition that any modification of the settlement agreement must be approved by the court, even if the agreement purports to let the parties modify it without court approval. The court dismissed the case with prejudice, declared all pending motions moot, and directed the Clerk of Court to close the case.