Janetis v. Lifebridge Health, Inc.

CourtDistrict Court, D. Maryland
DecidedMay 1, 2025
Docket1:23-cv-02628
StatusUnknown

This text of Janetis v. Lifebridge Health, Inc. (Janetis v. Lifebridge Health, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Janetis v. Lifebridge Health, Inc., (D. Md. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND

MEGAN JANETIS, individually and on behalf * of others similarly situated, * Plaintiff, v. * Civil Action No. RDB-23-2628 LIFEBRIDGE HEALTH, INC. *

Defendant. * * * * * * * * * * * * * * MEMORANDUM OPINION This matter arises from a dispute over unpaid overtime compensation under the Fair Labor Standards Act of 1938 (“FLSA”), 29 U.S.C. § 201, et seq.; Maryland Wage and Hour Law (“MWHL”), MD. CODE ANN., LABOR & EMPL. §§ 3-401, et seq.; and Maryland Wage Payment and Collection Law (“MWPCL”), MD. CODE ANN., LABOR & EMPL. §§ 3-501, et seq. On April 18, 2025, Plaintiff filed an Unopposed Motion to Approve Settlement and Dismiss Claims With Prejudice (“Unopposed Motion”). (ECF No. 34, 34-1.) Plaintiff’s submission has been reviewed, and no hearing is necessary. See Local Rule 105.6 (D. Md. 2021). On May 1, 2025, this Court by Order (ECF No. 35) GRANTED Plaintiff’s Unopposed Motion. This Memorandum Opinion further expounds upon the reasons for that decision. BACKGROUND Plaintiff Megan Janetis (“Plaintiff” or “Janetis”) brings this putative class and collective action on behalf of herself and all hourly, non-exempt employees of Defendant LifeBridge Health, Inc. (“Defendant” or “LifeBridge”) who had a meal period automatically deducted from their wages at any time on or after September 17, 2020. (ECF No. 1 ¶¶ 24, 26.) Janetis seeks recovery of overtime wages, attorneys’ fees and costs, interest, and liquidated damages based on her allegation that LifeBridge subjected her and other employees to automatic lunch deduction without providing bona fide meal breaks. (ECF No. 1 ¶¶ 17–18, 168.) LifeBridge

denied Plaintiff’s allegations, denied liability, and raised various affirmative defenses. (ECF No. 8 at 12–25.) Janetis has not moved for—and the Court has not granted—certification of a collective or class, but two individuals, Carolyn Hurlbut and Tanisha Robinson (collectively, “Opt-In Plaintiffs”), have filed consents to join this lawsuit. See (ECF Nos. 2, 25.) On December 8, 2023, the parties agreed to stay the case for early mediation and informally exchanged documents for settlement discussions. (ECF No. 21.) On April 18,

2024, and May 8, 2024, the parties attended mediation sessions with experienced wage and hour mediator Dennis Clifford (“Mr. Clifford”). (ECF No. 34-1 at 6.) These two sessions did not result in an agreement, but the parties consented to additional stays to further settlement discussions. (ECF No. 28; ECF No. 34-1 at 6.) On February 20, 2025, the parties again met with Mr. Clifford for a settlement discussion in which they reached a settlement in principle. (ECF No. 34-1 at 6.) The parties agreed to resolve the matter on a collective basis

and executed a formal Settlement Agreement (“Settlement Agreement” or “Agreement”) (ECF No. 34-2) setting the terms of settlement. (ECF No. 34-1 at 6.) The Settlement Agreement applies to approximately 14,219 “Putative Collective Members” who were employed as a non-exempt employees of listed LifeBridge entities between September 27, 2020, and May 21, 2024. (ECF No. 34-1 at 6; ECF No. 34-2.) It also details a Notice Procedure by which Putative Collective Members may execute a Consent to

Join and Release Form to be considered Qualified Claimants. (ECF No. 34-1 at 7.) The Agreement provides for a maximum gross settlement amount of $8,000,000 (“Gross Fund”), which includes (1) settlement payments for distribution to Janetis and Qualified Claimants; (2) Janetis’s service payment; (3) Settlement Administration Costs; and (4) a negotiated award of

Plaintiff’s attorneys’ fees of 33% of the Gross Fund and costs of $10,716.33. (ECF No. 34-1 at 7, 8; ECF No. 34-2 § III(B)(2), (F)(4).) Individuals who do not timely meet the Notice Procedure will not participate or release claims via the settlement. (ECF No. 34-1 at 8.) Janetis and Qualified Claimants will be paid damages on a pro rata basis from the Net Fund, which reflects the amount remaining in the Gross Fund after payment of Janetis’s $8,000 service award, Settlement Administration Costs, and Plaintiff’s attorneys’ fees and costs. (ECF No.

34-1 at 7, 8; ECF No. 34-2 § III(F), (F)(3).) The Agreement also includes a release provision by each Qualified Claimant1 and Janetis will execute a general release against LifeBridge in exchange for accepting and receiving an approved Service payment. (ECF No. 34-1 at 9; ECF No. 34-2 § IV(A), (B).) On April 18, 2024, Plaintiff filed an Unopposed Motion (ECF No. 34) requesting that this Court approve the Agreement. By Order (ECF No. 35) dated May 1, 2025, this Court approved the Agreement.

STANDARD OF REVIEW When evaluating settlement agreements for approval under the FLSA, courts should approve settlements that “reflect[] a ‘reasonable compromise of disputed issues’ rather than a

1 The release provision provides that each Qualified Claimant releases LifeBridge from “any and all federal and state wage and hour claims and wage payment claims that accrued between September 27, 2020 and the date on which the Qualified Claimant executes a Consent to Join and Release Form, including, without limitation, all federal Fair Labor Standards Act claims, all Maryland Wage and Hour Law claims, all Maryland Wage Payment and Collection Law claims, all state and federal claims for unpaid overtime or straight time wages, and related claims for penalties, interest, liquidated damages, attorneys’ fees, costs, and expenses.” (ECF No. 34-1 at 9; ECF No. 34-2 § IV(A).) ‘mere waiver of statutory rights brought about by an employer’s overreaching.’” Saman v. LBDP, Inc., No. DKC-12-1083, 2013 U.S. Dist. LEXIS 83414, at *2 (D. Md. June 13, 2013) (quoting Lynn’s Food Stores, Inc. v. United States, 679 F.2d 1350, 1354 (11th Cir. 1982)).

In making such a determination, district courts in the Fourth Circuit “employ the considerations set forth by the Eleventh Circuit in Lynn’s Food Stores.” Id. at *3 (citing Hoffman v. First Student, Inc., No. WDQ-06-1882, 2010 U.S. Dist. LEXIS 27329, at *2 (D. Md. Mar. 23, 2010); Lopez v. NTI, LLC, 748 F. Supp. 2d 471, 478 (D. Md. 2010)). Pursuant to Lynn’s Food Stores, an FLSA settlement generally should be approved if it “reflects a fair and reasonable resolution of a bona fide dispute over FLSA provisions.” 679 F.2d at 1355. As a first step, a

court must determine whether a bona fide dispute exists as to a defendant’s liability under the FLSA. Saman, 2013 U.S. Dist. LEXIS 83414, at *7 (citing Lane v. Ko-Me, LLC, Civ. No. DKC-10-2261, 2011 U.S. Dist. LEXIS 97870, at *2 (D. Md. Aug. 31, 2011)). Second, the terms of the proposed settlement agreement must be assessed for fairness and reasonableness, which requires weighing a number of factors, including: “(1) the extent of discovery that has taken place; (2) the stage of the proceedings, including the complexity, expense and likely

duration of the litigation; (3) the absence of fraud or collusion in the settlement; (4) the experience of counsel who have represented the plaintiffs; (5) the opinions of [] counsel . . . ; and (6) the probability of plaintiffs’ success on the merits and the amount of the settlement in relation to the potential recovery.” Lomascolo v. Parsons Brinckerhoff, Inc., 2009 WL 3094955, at *10 (E.D. Va. Sept. 28, 2009). If a proposed settlement of FLSA claims includes a provision regarding attorneys’ fees, the reasonableness of the award must also be “independently

assessed, regardless of whether there is any suggestion that a conflict of interest taints the amount the wronged employee recovers under a settlement agreement.” Lane, 2011 U.S. Dist. LEXIS 97870, at *3. ANALYSIS

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