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Luna v. Schulz

United States District Court, M.D. Florida, Orlando Division

April 18, 2018

OSVALDO LUNA, Plaintiff,
v.
FRANK SCHULZ and F.S. PROPERTY MAINTENANCE, INC., Defendants.

          REPORT AND RECOMMENDATION

          GREGORY J. KELLY UNITED STATES MAGISTRATE JUDGE

         This cause came on for consideration without oral argument on the following motion:

MOTION: JOINT MOTION FOR APPROVAL OF SETTLEMENT AND DISMISSAL WITH PREJUDICE AND INCORPORATED MEMORANDUM OF LAW (Doc. No. 25)
FILED:April 13, 2018
THEREON it is RECOMMENDED that the motion be GRANTED.

         I. BACKGROUND.

         On December 12, 2017, Plaintiff filed a Complaint against Defendants alleging a violation of the overtime provisions of the Fair Labor Standards Act (“FLSA”). Doc. No. 1. On April 13, 2018, the parties filed a Joint Motion for Approval of Settlement Agreement and Dismissal with Prejudice and Incorporated Memorandum of Law (the “Motion”). Doc. No. 25.

         II. LAW.

         In Lynn's Food Stores, Inc. v. United States Department of Labor, 679 F.2d 1350 (11th Cir. 1982), the Eleventh Circuit addressed the means by which an FLSA settlement may become final and enforceable:

There are only two ways in which back wage claims arising under the FLSA can be settled or compromised by employees. First, under section 216(c), the Secretary of Labor is authorized to supervise payment to employees of unpaid wages owed to them . . . . The only other route for compromise of FLSA claims is provided in the context of suits brought directly by employees against their employer under section 216(b) to recover back wages for FLSA violations. When employees bring a private action for back wages under the FLSA, and present to the district court a proposed settlement, the district court may enter a stipulated judgment after scrutinizing the settlement for fairness.

         Thus, unless the parties have the Secretary of Labor supervise the payment of unpaid wages owed or obtain the Court's approval of the settlement agreement, the parties' agreement is unenforceable. Id. Before approving an FLSA settlement, the Court must scrutinize it to determine if it is a fair and reasonable resolution of a bona fide dispute. Id. at 1354-55. If the settlement reflects a reasonable compromise over issues that are actually in dispute, the Court may approve the settlement. Id. at 1354.

         In determining whether the settlement is fair and reasonable, the Court should consider the following factors:

(1) the existence of collusion behind the settlement;
(2) the complexity, expense, and likely duration of the ...

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