Crawford v. Leeding Builders Group, LLC

Background

Algi Crawford, Xavier Harrison, and Keveen Goris filed this Fair Labor Standards Act (FLSA) action on behalf of themselves and others similarly situated against Leeding Builders Group, LLC, and AECOM. On April 15, 2024, the plaintiffs told the court that they intended to file a motion seeking approval of a settlement, but they had not filed that motion by the date of this order.

Court’s Order

The court ordered the plaintiffs to file their motion seeking approval of the settlement and the FLSA settlement agreement by May 15, 2024. The court reminded the parties that an FLSA action cannot be dismissed unless the settlement is approved by the court or by the U.S. Department of Labor.

If the plaintiffs seek court approval, the plaintiffs or the parties jointly must file a letter motion explaining why the settlement is fair and reasonable. The motion must discuss, at minimum:

- the plaintiffs’ possible range of recovery; - how the settlement would help the parties avoid the burdens and expenses of proving their claims and defenses; - the seriousness of the litigation risks; - whether experienced counsel negotiated the settlement at arm’s length; and - the possibility of fraud or collusion.

The motion must also address whether there is a genuine dispute about the number of hours worked or the compensation owed, and how much of the settlement the plaintiffs’ attorney will seek as fees. The court warned that general or unsupported statements are not enough.

The court further stated that, absent special circumstances, it would not approve a settlement filed under seal or in redacted form. Absent compelling circumstances, it also would not approve sweeping nondisclosure provisions or broad releases of claims unrelated to FLSA issues. The order identifies concerns about releases covering numerous entities beyond the defendants, the plaintiffs’ successors and representatives, or wage claims beyond those involved in this case.

Any request for attorney fees must include contemporaneous billing records showing, for each attorney, the date, hours worked, and nature of the work.

Consent to Magistrate Judge and Disposition

The parties may consent to have Judge Jennifer Willis oversee settlement approval. If they do so, they must file a fully executed consent form by May 10, 2024. The parties may withhold consent without negative consequences. If the court approves the consent form, further proceedings will take place before Judge Willis. The order states that any appeal would go directly to the U.S. Court of Appeals for the Second Circuit.

Judge Analisa Torres ordered the filing of the settlement-approval materials and provided requirements for reviewing them. The court did not approve or reject the settlement in this order.