The court rejected the parties’ first proposed settlement of Fair Labor Standards Act claims as unreasonable, but approved their second proposal and dismissed the matter.
Each plaintiff is estimated to be receiving between 40 and 50 percent of their expected recovery. The court noted that this proportion was low, but acceptable in light of the fact that litigation was in early stages and no discovery had been taken. The first settlement proposal included waivers of too many types of claims and imposed unreasonable confidentiality and non-disparagement obligations on the plaintiffs. However, a revised agreement limiting the waivers to federal and state wage and hour claims and removing the confidentiality and non-disparagement provisions was fair.