Brawley Public Safety Employee Association v. City of Brawley

CourtDistrict Court, S.D. California
DecidedJanuary 30, 2020
Docket3:19-cv-01891
StatusUnknown

This text of Brawley Public Safety Employee Association v. City of Brawley (Brawley Public Safety Employee Association v. City of Brawley) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Brawley Public Safety Employee Association v. City of Brawley, (S.D. Cal. 2020).

Opinion

5 6 7

8 UNITED STATES DISTRICT COURT 9 SOUTHERN DISTRICT OF CALIFORNIA 10

11 BRAWLEY PUBLIC SAFETY Case No. 19-cv-1891-BAS-LL EMPLOYEE ASSOCIATION, et al., 12 ORDER: Plaintiff, (1) GRANTING JOINT MOTION 13 FOR APPROVAL OF FLSA v. SETTLEMENT AND 14 DISMISSAL OF ACTION CITY OF BRAWLEY, et al., WITH PREJUDICE; AND 15 (2) GRANTING MOTION TO Defendants. DISMISS PARTY 16 [ECF Nos. 14, 15] 17 18 Plaintiffs Jeremy Schaffer et al.1 bring this action against Defendant City of 19 Brawley for violations of the Fair Labor Standards Act (“FLSA”). On January 27, 20 2020, the Parties filed a joint stipulation and request for approval of their settlement 21 agreement and dismissal of this action with prejudice. (“Mot.,” ECF No. 14.) The 22 Court GRANTS the joint motion and APPROVES the settlement agreement. 23 I. BACKGROUND 24 Plaintiffs and putative plaintiffs are or were employed by the City of Brawley 25 26 1 Brawley Police Safety Employee Association (“BPSEA”) is a named plaintiff, but the Parties 27 provide that BPSEA is “not a party to the settlement agreement and “has agreed to dismiss itself 1 and are or were members of the Brawley Public Safety Employee Association 2 (“BPSEA”). (Mot. at 2.) They are non-exempt and entitled to overtime 3 compensation under FLSA. (Id. at 3.) They are subject to the operative collective 4 bargaining agreement entered into by BPSEA and the City (also known as the 5 Memorandum of Understanding (“MOU”)). (Id.) Plaintiffs claim they worked 6 overtime, but, “as a result of the collective bargaining process, the City agreed to pay 7 overtime pursuant to the MOU beyond what is required under the FLSA.” (Id.) 8 When Plaintiffs raised this dispute, the Parties engaged in “extensive discussions” 9 regarding calculation of Plaintiffs’ regular rate of pay and how the City had 10 calculated the back FLSA overtime owed. (Id.; “Swanson Decl.,” ECF No. 14-2, at 11 ¶ 5.) 12 Plaintiffs filed the Complaint on October 1, 2019. Plaintiffs allege the City 13 violated the FLSA by failing to pay compensation for hours worked in excess of the 14 40-hour threshold in a 7-day work week at the rate of 1.5 times the regular rate of 15 pay. Plaintiffs sought back wages for the alleged violations going back three years, 16 liquidated damages, and reasonable attorney’s fees and costs under the FLSA. 17 (“Compl.,” ECF No. 1.) On November 22, 2019, the Parties agreed to a settlement. 18 The settlement is as follows: Defendant will pay a total settlement sum of 19 $327,912.03. Defendant will pay $277,912.03 of the total settlement sum to 20 Plaintiffs and putative plaintiffs as the total amount of unpaid overtime owed and 21 liquidated damages over the period of January 1, 2015 to the execution of the 22 Settlement Agreement; Defendant will pay $50,000.00 of the total settlement sum in 23 attorney’s fees and costs. (Mot. at 4.) Plaintiffs agree to release Defendant from all 24 overtime compensation claims against Defendant under the FLSA and MOU that 25 may exist or have existed as of and including the effective date of the Settlement 26 Agreement with prejudice. (Id.) 27 II. LEGAL STANDARD 1 and oppressive working hours.” Selk v. Pioneers Mem’l Healthcare Dist., 159 F. 2 Supp. 3d 1164, 1171 (S.D. Cal. 2016). Specifically, “[t]he FLSA establishes federal 3 minimum wage, maximum-hour, and overtime guarantees that cannot be modified 4 by contract.” Genesis Healthcare Corp. v. Symczyk, 569 U.S. 66, 69 (2013). 5 “[C]laims for unpaid wages under the FLSA may only be waived or otherwise settled 6 if settlement is supervised by the Secretary of Labor or approved by a district court.” 7 Selk, 159 F. Supp. 3d at 1172. 8 “The Ninth Circuit has not established criteria for district courts to consider in 9 determining whether a FLSA settlement should be approved.” Beidleman v. City of 10 Modesto, No. 1:16-cv-1100-DAD-SKO, 2017 WL 5257087, at *1 (E.D. Cal. Oct. 11 26, 2017). However, district courts in the Ninth Circuit generally apply the standard 12 adopted by the Eleventh Circuit in Lynn’s Food Stores, Inc. v. United States, 679 13 F.2d 1350, 1353 (11th Cir. 1982). Id.; see also Roberts v. City of Chula Vista, No. 14 16cv1955-MMA (DHB), 2017 WL 6541105, (S.D. Cal. Dec. 21, 2017); Slezak v. 15 City of Palo Alto, No. 16-cv-3224-LHK, 2017 WL 2688224, at *1–2 (N.D. Cal. June 16 22, 2017); Ambrosino v. Home Depot U.S.A., Inc., 2014 WL 1671489, at *1 (S.D. 17 Cal. Apr. 28, 2014). Thus, in reviewing a FLSA settlement, courts must determine 18 whether the settlement represents a “fair and reasonable resolution of a bona fide 19 dispute.” Lynn’s Food Stores, 679 F.2d at 1355. “A bona fide dispute exists when 20 there are legitimate questions about ‘the existence and extent of Defendant’s FLSA 21 liability.’” Selk, 159 F. Supp. 3d at 1172 (citing Ambrosino, 2014 WL 1671489, at 22 *1). A court will not approve a settlement of an action where there is no question 23 that the FLSA entitles the plaintiffs to the compensation they seek, because it would 24 shield employers from the full cost of complying with the statute. See id. 25 Once a court determines that a bona fide dispute exists, “it must then determine 26 whether the settlement is fair and reasonable.” Id. Courts should consider the 27 following factors in evaluating whether a settlement is fair and reasonable under the 1 the amount of discovery completed; (3) the seriousness of the litigation risks faced 2 by the parties; (4) the scope of any release provision in the settlement agreement; (5) 3 the experience and views of counsel; and (6) the possibility of fraud or collusion. Id. 4 at 1173. A “district court must ultimately be satisfied that the settlement’s overall 5 effect is to vindicate, rather than frustrate, the purposes of the FLSA.” Id. 6 Finally, the Court must evaluate whether the award of attorney’s fees and costs 7 is reasonable. See Selk, 159 F. Supp. 3d at 1180; see also 29 U.S.C. § 216(b) (noting 8 that in a FLSA action, the court “shall, in addition to any judgment awarded to the 9 plaintiff or plaintiffs, allow a reasonable attorney’s fee to be paid by the defendant, 10 and costs of the action”). “If the settlement reflects a reasonable compromise over 11 issues that are actually in dispute, the Court may approve the settlement ‘in order to 12 promote the policy of encouraging settlement of litigation.’” Ambrosino, 2014 WL 13 1671489, at *1 (citing Lynn’s Food Stores, 679 F.2d at 1354). 14 III. ANALYSIS 15 A. A Bona Fide Dispute Exists 16 As an initial matter, the Court finds that a bona fide dispute exists between the 17 Parties over potential liability under the FLSA. In their joint motion, the Parties state 18 that Plaintiffs believe “that the City did not include all forms of remuneration in its 19 calculation of the Plaintiffs’ regular rate of pay” but the City believes that “even if 20 it failed to include all forms of remuneration in its calculation of the FLSA regular 21 rate of pay, there was not necessarily an underpayment in the amount Plaintiffs claim 22 is owed because of how Plaintiffs were actually compensated under their applicable 23 MOU.” (Mot. at 6.) The Parties also dispute whether the City acted in good faith. 24 (Id.) Thus, in light of the competing views on issues central to the case, the Court 25 finds that there is a bona fide dispute between the Parties. 26 B. The Settlement Agreement is Fair and Reasonable 27 Satisfied that a bona fide dispute exists, the Court next considers the relevant 1 the FLSA. 2 1. Plaintiffs’ Range of Possible Recovery 3 “A district court evaluates the plaintiff’s range of potential recovery to ensure 4 that the settlement amount agreed to bears some reasonable relationship to the true 5 settlement value of the claims.” Selk, 159 F. Supp. 3d at 1174.

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Brawley Public Safety Employee Association v. City of Brawley, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brawley-public-safety-employee-association-v-city-of-brawley-casd-2020.