Fortin v. Dedicated Nursing Associates, Inc.
2:21-cv-02836
| S.D. Ohio | Nov 17, 2022Background
- Plaintiff Amanda Fortin sued Dedicated Nursing Associates, Inc. under the FLSA alleging unpaid overtime tied to the employer’s meal-break policies and improper deductions for rest breaks under 20 minutes.
- The case had not been conditionally certified as a collective, but 10 opt-in plaintiffs had joined and the parties estimated ~1,300 potential eligible participants for settlement.
- Parties agreed to settle only the FLSA claims and dismiss state-law claims; they submitted a joint motion asking the court to approve the settlement.
- The total settlement fund is $250,000, with individual payments allocated for alleged rest-break deductions and pro rata payments for missed meal breaks.
- Representative Plaintiff would receive a $5,000 service award; current opt-ins who release claims would get $1,000 each.
- Counsel requested $83,333.33 in attorneys’ fees (≈33%) and $5,404.15 in costs; the court found these amounts reasonable and approved the settlement, dismissed the case with prejudice, and retained jurisdiction to enforce the settlement.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a court may approve an FLSA collective settlement | Settlement resolves bona fide dispute over meal and rest-break pay and should be approved | Settlement is appropriate given disputed liability and defenses regarding interruptions, limitations, and collective treatment | Court approved settlement as fair, reasonable, and adequate and authorized dismissal with prejudice |
| Whether a bona fide dispute exists to justify supervised settlement | There is a genuine dispute about uninterrupted meal breaks, limitations period, and collective certification | Defendant disputed liability and ability to pursue claims collectively | Court found a bona fide dispute present |
| Whether proposed service awards are reasonable | Service awards ($5,000 to rep; $1,000 to opt-ins) incentivize representation and compensation for efforts | Defendant did not oppose awards; considered reasonable relative to fund | Court approved service awards as reasonable |
| Whether attorneys’ fees and costs are reasonable | Counsel sought one-third of fund (~33%) and $5,404.15 costs as reasonable for common-fund FLSA settlement | Defendant did not contest fees; parties negotiated fees as part of settlement | Court independently assessed and approved fees and costs as reasonable |
Key Cases Cited
- Lynn's Food Stores, Inc. v. United States, 679 F.2d 1350 (11th Cir. 1982) (FLSA settlements require court or Secretary of Labor supervision)
- Int'l Union, United Auto., Aerospace & Agr. Implement Workers of Am. v. Gen. Motors Corp., 497 F.3d 615 (6th Cir. 2007) (court must find class/collective settlement "fair, reasonable, and adequate")
- Hadix v. Johnson, 322 F.3d 895 (6th Cir. 2003) (service awards are an appropriate method to compensate representative plaintiffs)
