Monroe v. Progressive Waste Solutions of LA, Inc.
2:17-cv-05695
E.D. La.Oct 10, 2017Background
- Lejeaun Celestine (Plaintiff) was hired by Progressive Waste Solutions of LA, Inc. (PWS) as a driver in Aug. 2015; he complained in early 2016 about wage calculations.
- PWS’s internal investigation found underpayment; Celestine received $3,095.20 in back pay (including overtime) and was subsequently terminated.
- Upon termination Celestine signed a written Release of All Claims and an Acknowledgment of the back-pay calculation; the Release included a seven-day review period and advised consulting an attorney.
- The Release expressly waived all claims against PWS, including claims in a representative capacity; the Acknowledgment attached payroll calculations showing overtime adjustments.
- PWS moved for partial summary judgment to enforce the Release and dismiss Celestine individually or bar him from acting as a class representative; Celestine opposed and sought Rule 56(d) discovery delay.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the signed Release validly and voluntarily waives Celestine's FLSA and related claims | Celestine contends he did not waive his FLSA claim and disputes that overtime was discussed | PWS argues the Release and Acknowledgment were knowing, voluntary, and settle FLSA back-pay and overtime claims | Court held the Release was knowing and voluntary and enforceable; waiver applies |
| Whether the Release bars Celestine from serving as a class representative | Celestine asserts he should still proceed individually and/or represent the class | PWS asserts the Release explicitly waives representative capacity and therefore bars class representation | Court held the Release’s language relinquishing representative claims precludes Celestine from serving as a class representative |
| Whether the settlement here falls within the FLSA exception allowing private compromise of disputed wages | Celestine argues the settlement was not a bona fide resolution of overtime issues | PWS contends the settlement compensated disputed straight and overtime hours and fits the bona fide exception | Court found the facts (investigation, calculation, payment, signed acknowledgement) show a bona fide FLSA settlement and enforceability |
| Whether Rule 56(d) discovery should delay summary judgment | Celestine requested time for discovery to contest adequacy/knowledge of waiver | PWS argued the requested discovery was not relevant to whether the Release was knowing and voluntary | Court denied Rule 56(d) relief as the requested discovery was not material to validity of the Release |
Key Cases Cited
- Williams v. Phillips Petroleum Co., 23 F.3d 930 (5th Cir.) (release enforceability requires waiver be knowing and voluntary)
- Alexander v. Gardner-Denver Co., 415 U.S. 36 (U.S. 1974) (arbitral or settlement waivers implicate public policy in employment claims)
- O'Hare v. Global Nat. Res., Inc., 898 F.2d 1015 (5th Cir.) (totality-of-the-circumstances factors for voluntariness)
- Bormann v. AT & T Commc'ns, Inc., 875 F.2d 399 (2d Cir.) (consider whether employer encouraged consultation with counsel)
- Bodle v. TXL Mortg. Corp., 788 F.3d 159 (5th Cir.) (unsupervised private FLSA settlements for bona fide disputes are permissible)
- Martin v. Spring Break '83 Prods., L.L.C., 688 F.3d 247 (5th Cir.) (discusses rationale for permitting certain FLSA compromises)
- Martinez v. Bohls Bearing Equip. Co., 361 F. Supp. 2d 608 (W.D. Tex.) (enforced FLSA release after payment for disputed overtime)
- Cevasco v. Nat'l R.R. Passenger Corp., 606 F. Supp. 2d 401 (S.D.N.Y.) (limits Rule 56(d) relief where sought discovery is irrelevant to the motion)
- United Fire & Cas. Co. v. Hixson Bros. Inc., 453 F.3d 283 (5th Cir.) (summary judgment standard)
- Eason v. Thaler, 73 F.3d 1322 (5th Cir.) (conclusory allegations insufficient to defeat summary judgment)