Brown v. CE Solutions Group, LLC
1:23-cv-03029
S.D.N.Y.May 9, 2024Background
- The case involves a dispute under the Fair Labor Standards Act (FLSA) between Terri Coleman (plaintiff) and CE Solutions Group, LLC (defendants).
- The parties have informed the court that they have reached a settlement agreement.
- FLSA settlements require court or Department of Labor approval; private settlements are not permitted without judicial oversight.
- The court must review the settlement to ensure it is fair and reasonable, considering specific factors.
- The court directed the parties to submit the settlement terms and a joint letter justifying fairness by June 7, 2024.
- Any attorney’s fee provisions, releases, confidentiality or non-disparagement clauses must be justified with evidence and legal authority.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the FLSA settlement is fair and reasonable and should be approved by the court | Coleman contends the settlement is a fair compromise of disputed issues. | CE Solutions agrees and supports judicial approval as fair and reasonable. | Court requires submission of settlement details, joint fairness letter, and supporting evidence before approval. |
| Appropriateness of attorney’s fees provision | Plaintiff seeks approval of negotiated attorney’s fees as reasonable under the law. | Defendant does not oppose but requests justification per court standards. | Court will review fees upon submission of contemporaneous billing records and justification. |
| Inclusion of release, confidentiality, or non-disparagement clauses in the settlement | Plaintiff proposes such clauses as part of the settlement. | Defendant consents but must show provisions are fair and justified. | Court demands close scrutiny and case law support for any such clauses before approval. |
| Consent to Magistrate Judge oversight of settlement | Agrees to possible review by Magistrate if all consent. | Agrees to possible review by Magistrate if all consent. | Option noted; not required but available upon mutual agreement. |
Key Cases Cited
- Cheeks v. Freeport Pancake House, Inc., 796 F.3d 199 (2d Cir. 2015) (FLSA settlements require court or Department of Labor approval)
- Samake v. Thunder Lube, Inc., 24 F.4th 804 (2d Cir. 2022) (Judicial scrutiny of FLSA settlements necessary)
- Velasquez v. SAFI-G, Inc., 137 F. Supp. 3d 582 (S.D.N.Y. 2015) (Standard for fairness and reasonableness of FLSA settlements)
- Wolinsky v. Scholastic Inc., 900 F. Supp. 2d 332 (S.D.N.Y. 2012) (Factors for determining approval of FLSA settlement)
- Lliguichuzcha v. Cinema 60, LLC, 948 F. Supp. 2d 362 (S.D.N.Y. 2013) (Separate assessment required for attorney’s fees in FLSA settlements)