Larkin v. UAB Medicine Enterprise

CourtDistrict Court, N.D. Alabama
DecidedJune 20, 2025
Docket2:23-cv-00142
StatusUnknown

This text of Larkin v. UAB Medicine Enterprise (Larkin v. UAB Medicine Enterprise) is published on Counsel Stack Legal Research, covering District Court, N.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Larkin v. UAB Medicine Enterprise, (N.D. Ala. 2025).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ALABAMA SOUTHERN DIVISION

DANIELLE LARKIN and MIA ) NEUSTEIN, individually and on ) behalf of all persons similarly ) situated, ) ) Plaintiffs, ) ) Case No.: 2:23-cv-142-AMM v. ) ) UAB MEDICINE ENTERPRISE, ) formerly known as UAB Health ) System, and UAB HOSPITAL ) MANAGEMENT LLC, ) ) Defendants. )

MEMORANDUM OPINION ON PLAINTIFFS’ UNOPPOSED MOTION FOR SETTLEMENT APPROVAL AND ATTORNEYS’ FEES AND COSTS

This case is before the court on an unopposed motion for settlement approval and attorneys’ fees and costs. Doc. 86. For the reasons stated below, the motion is GRANTED and this action is DISMISSED WITH PREJUDICE. The court retains jurisdiction to enforce the Settlement Agreement for plaintiffs’ unpaid wages claim under the Fair Labor Standards Act, Doc. 86-1. I. BACKGROUND

This dispute arises from an employment relationship between plaintiffs Danielle Larkin, Mia Neustein, and collective action members, and defendants UAB Medicine Enterprise (“UAB Medicine”) and UAB Hospital Management LLC (“UAB Hospital”). On February 6, 2023, Ms. Larkin and Ms. Neustein filed a putative collective action complaint against the defendants. Doc. 1. Ms. Larkin and

Ms. Neustein asserted that the defendants “willfully failed to properly compensate Plaintiffs and FLSA Collective members for all hours worked . . . in excess of forty (40) hours per week,” in violation of the Fair Labor Standards Act, 29 U.S.C. § 201,

et seq. (“FLSA”). Doc. 1 ¶ 56. These are the facts alleged in the complaint: Ms. Larkin and Ms. Neustein formerly worked as Nurses for the defendants. Id. ¶¶ 5–6. The defendants “implemented the Hospital Kronos Timekeeping System

for recordkeeping of time and attendance, vacation and sick days for non-exempt employees, including Nurses.” Id. ¶ 22. The defendants’ Employee Handbook states that “the FLSA requires overtime pay at a rate of one and one-half times an

employee’s regular rate of pay after 40 hours of work in a work week of seven consecutive days (168 hours).” Id. ¶ 59. The Handbook also states that “time worked must be recorded accurately.” Id. ¶ 45. Ms. Larkin and Ms. Neustein asserted that the “defendants suffered from a

high employee turnover rate and [the hospital] was constantly understaffed.” Id. ¶ 34. According to Ms. Larkin and Ms. Neustein, the “chronic understaffing . . . required Plaintiffs and other Nurses to work additional/overtime shifts every two to

three weeks,” which “resulted in workweeks of more than forty (40) hours.” Id. “Additionally, Plaintiffs rarely left their shift at the time that defendants scheduled for them to leave, and often stayed late to give report, finish tasks, or assist night

shift with medical emergencies.” Id. ¶ 35. Ms. Larkin and Ms. Neustein further asserted that “[d]ue to UAB’s chronic understaffing and volume of work, Nurses were routinely forced to work through

their meal break. . . .” Id. ¶ 36. Ms. Larkin and Ms. Neustein alleged that defendants “were not only aware of and permitted this practice [of working through meal breaks], but the work schedules and conditions imposed by Defendants effectively required this practice.” Id. ¶ 39. Specifically, Ms. Larkin and Ms. Neustein asserted

that “[w]hether or not the meal break was taken, Defendants’ timekeeping system, Kronos, automatically deducted a thirty (30) minute break from their paychecks.” Id. ¶ 40.

Ms. Larkin and Ms. Neustein alleged that the “Defendants. . . did not accurately record and track all of the hours worked by Plaintiffs and other Nurses and therefore failed to compensate Plaintiffs and the putative collective members at one and one-half (1½) times the regular rate of pay for hours worked over forty (40)

hours in a workweek.” Id. ¶ 42. In their answer, the defendants denied these allegations. See Doc. 47 ¶¶ 31–36, 38–44. On April 10, 2023, the defendants filed a motion to dismiss, Doc. 25, and on

June 30, 2023, Ms. Larkin and Ms. Neustein filed a motion for conditional certification, Doc. 39. On August 2, 2023, the court denied the motion to dismiss, Doc. 44, and the court granted the motion for conditional certification on December

11, 2023, Doc. 53. Four hundred and fifty (450) individuals then opted in to join this lawsuit. See Docs. 37–40, 46, 58–70, 73–75. The parties consented to, and the court granted, a motion to stay the case to pursue alternative dispute resolution on April

22, 2024. See Docs. 71, 72. Following mediation, the plaintiffs filed this unopposed motion for settlement approval and attorneys’ fees and costs on November 22, 2024. Doc. 86. In their settlement agreement, the parties reached a gross settlement amount

of $600,000.00. Doc. 86-1 ¶ 11(G). This includes $300,000.00 in “attorneys’ fees and reimbursement of litigation costs,” $1,500.00 in “general release payments” to Ms. Larkin and Ms. Neustein, and $6,000.00 in “payment of the Settlement

Administration Costs to administer the Settlement.” Id. Of the net settlement amount1—$291,000—“[f]irst, each Settlement Collective Member will receive a minimum payment of $100.00.” Doc. 86 at 9. “Second, Settlement Collective Members will receive a pro rata portion of the remaining Net Settlement Amount

based on the number workweeks in which they worked more than forty (40) hours,

1 The agreement defines the net settlement amount as “the Gross Settlement Amount less Plaintiffs’ Counsel’s attorneys’ fees and reimbursement of litigation costs of Three Hundred Thousand Dollars ($300,000.00), general release payments to the two Named Plaintiffs in the amount of One Thousand Five Hundred Dollars ($1,500.00) each, and the Settlement Administration Costs not to exceed Six Thousand Dollars ($6,000.00), subject to Court approval.” Id. ¶ 11(H). calculated using actual workweek hours recorded in Defendants’ records plus thirty (30) additional minutes per workweek.” Id.

“Fifty percent (50%) of each Settlement Award shall be deemed payment of alleged unpaid wages, subject to all legally required garnishments, liens, wage withholding orders, regular withholding, and similar obligations, and reported on an

IRS Form W-2.” Id. n.2. “The remaining fifty percent (50%) of each Settlement Award shall be deemed compensation for interest and liquidated damages, shall not be subject to payroll withholdings, and shall be reported on an IRS Form 1099.” Id. “Simpluris, a third-party independent company chosen by the Parties will

perform all notice and administration responsibilities” including “distribut[ing] all Settlement Awards to each Settlement Collective Member with an accompanying Notice of Collective Action Settlement.” Id. at 9–10. “Each Settlement Collective

Member who cashes their settlement check shall release and discharge the [defendants] for all FLSA wage and hour claims asserted . . . including . . . all overtime and liquidated damages under the FLSA for the time period from the earlier of the three years prior to the filing of their Opt-In Consent Form through the date

of execution of the [Settlement] Agreement.” Id. at 10. II. LEGAL STANDARD The FLSA provides: “Any employer who violates the provisions of section

206 or section 207 of this title shall be liable to the employee or employees affected in the amount of their unpaid minimum wages, or their unpaid overtime compensation, as the case may be, and in an additional equal amount as liquidated

damages.” 29 U.S.C. § 216(b). For hours worked in excess of forty in a workweek, an hourly employee must be paid at least one and a half times his ordinary hourly wage. Id. § 207(a)(1).

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