Logan v. United American Security, LLC

CourtDistrict Court, D. Colorado
DecidedJuly 27, 2022
Docket1:21-cv-00257
StatusUnknown

This text of Logan v. United American Security, LLC (Logan v. United American Security, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Logan v. United American Security, LLC, (D. Colo. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO Judge Nina Y. Wang Civil Action No. 21-cv-00257-NYW PAMELA LOGAN, on behalf of herself and all others similarly situated, Plaintiff, v. UNITED AMERICAN SECURITY, LLC, Defendant.

ORDER ON JOINT MOTION FOR APPROVAL OF FLSA SETTLEMENT This matter is before the court on the Joint Motion for Approval of FLSA Settlement (the “Motion” or “Motion for Approval of Settlement”) [Doc. 53].1 Having reviewed the Motion, the

applicable case law, and the entire docket, the Motion for Approval of Settlement is DENIED without prejudice. BACKGROUND Hollis Bailey (“Mr. Bailey”) initiated this action on behalf of himself and all other similarly situated persons that are or were hourly, full-time, non-exempt security guards employed by Defendant United American Security, LLC (“Defendant”). See generally [Doc. 1]. Mr. Bailey alleged generally that he worked for Defendant as a full-time, non-exempt security guard and regularly worked more than 40 hours per week. [Id. at ¶¶ 8, 17, 21]. He asserted that he and other similarly situated employees were required to arrive at work approximately 10 to 15 minutes prior

1 Originally, this court fully presided over this matter pursuant to 28 U.S.C. § 636(c), [Doc. 14], and the Order of Reference for all purposes dated March 24, 2021. [Doc. 20]. On July 22, 2022, Judge Wang was confirmed as a United States District Judge. to the start of their shift for a “pass down,” which involves “several shift-change duties that are essential for a security guard to perform his or her job,” such as learning about security issues that occurred on the previous shift and security issues that could potentially occur on the next shift. [Id. at ¶¶ 22-23]. Mr. Bailey alleged that he and other similarly situated workers were not paid for

any of this “pass down” work. [Id. at ¶ 24]. Mr. Bailey initiated this action on January 26, 2021, asserting that Defendant violated the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et seq., for not paying its full-time, non- exempt security guards for overtime hours worked. [Doc. 1 at ¶¶ 42-46]. This court held an initial Scheduling Conference on April 5, 2021, at which time certain class-certification deadlines were set, and set a second Scheduling Conference for June 16, 2021. See [Doc. 22 at 1]. On May 3, 2021, the Parties filed a Joint Stipulation for Conditional Certification and Request for Additional Time (the “Stipulation”). [Doc. 23]. In the Stipulation, the Parties indicated that they had stipulated to the conditional certification of the following class: [A]ll hourly security guards of Defendant who did not have an arbitration agreement with Defendant and who: (1) worked for [Defendant] in Colorado at any time between January 26, 2018 through the present; (2) worked forty hours or more in any workweek; (3) relieved a preceding shift; and (4) [were] required to arrive at work before his or her shift began to perform “pass on” or “pass down” duties, but [were] not paid for that time.

[Id. at 1]. The court approved the Stipulation for conditional certification. [Doc. 25]. On July 15, 2021, the Parties filed a Stipulated Motion to Amend the Complaint to substitute the then-named plaintiff, Mr. Bailey, with Pamela Logan (“Plaintiff” or “Ms. Logan”). [Doc. 31]. This court granted the Motion to Amend. [Doc. 32]. Then, on September 17, 2021, the Parties filed a Joint Notice of Settlement and Joint Motion to Vacate Deadlines, indicating that they had reached a resolution in this matter. [Doc. 41]. After the Parties’ first motion for approval of the FLSA opt-in notice was denied without prejudice, see [Doc. 43; Doc. 44], this court granted the Parties’ renewed motion for approval of the opt-in notice on November 10, 2021. [Doc. 45; Doc. 46]. The Parties filed the Motion for Approval of Settlement on June 15, 2022. [Doc. 53]. Upon review of the Motion, this court informed the Parties that based on the record before the court, it

was unable to determine the reasonableness of the Plaintiff’s requested attorney’s fees and thus could not adequately rule on the Motion. [Doc. 54]. Accordingly, the court ordered the Parties “to supplement the Motion for Approval of Settlement by submitting the information required by Local Rule 54.3, for each attorney for whom Plaintiff is seeking fees, on or before July 12, 2022.” [Id.]. On that date, Plaintiff filed Plaintiff’s Supplemental Evidence in Support of Joint Motion for Approval of FLSA Settlement (the “Supplement”) [Doc. 57]. Being fully advised in the premises, I consider the Parties’ arguments below. ANALYSIS Neither the Supreme Court nor Tenth Circuit has addressed whether a court must approve a settlement agreement under the FLSA, and there is a split of authority within the District of

Colorado on this issue. See Judd v. Keypoint Gov’t Sols., Inc., No. 18-cv-00327-RM-STV, 2021 WL 75224, at *2 (D. Colo. Jan. 8, 2021); Slaughter v. Sykes Enterprises, Inc., No. 17-cv-02038- KLM, 2019 WL 529512, at *2-6 (D. Colo. Feb. 11, 2019). However, “there does not appear to be disagreement at this time over whether FLSA settlements may be approved by” a court. Slaughter, 2019 WL 529512 at *6. In this instant action, the Parties seek court approval of their settlement agreement. [Doc. 53]. Having done so, this court turns to consider whether it should approve the Settlement Agreement. When employees file suit against their employer to recover back wages under the FLSA, the parties may present any proposed settlement agreement to the court for a determination as to whether the settlement agreement is fair and reasonable. See Baker v. Vail Resorts Mgmt. Co., No. 13-cv-01649-PAB-CBS, 2014 WL 700096, at *1 (D. Colo. Feb. 24, 2014) (citing Lynn’s Food Stores, Inc. v. United States, 679 F.2d 1350, 1353 (11th Cir. 1982)). Approval is appropriate if the Parties demonstrate that (1) the litigation involves a bona fide dispute, (2) the proposed

settlement is fair and equitable to all parties concerned, and (3) the proposed settlement contains a reasonable award of attorney’s fees. Id. at *1 (citing Lynn’s Food Stores, 679 F.2d at 1354). I. Bona Fide Dispute For the court to discern whether a bona fide dispute exists in this matter, the parties must present the following information to the court: (1) a description of the nature of the dispute; (2) a description of the employer’s business and the type of work performed by the employee; (3) the employer’s reasons for disputing the employee’s right to overtime; (4) the employee’s justification for the disputed wages; and (5) if the parties dispute the computation of wages owed, each party’s estimate of the number of hours worked and the applicable wage. Pliego v. Los Arcos Mexican Restaurants, Inc., 313 F.R.D. 117, 129 (D. Colo. 2016).

The Parties have adequately described their dispute here. Broadly speaking, Defendant provides security guard services for various customers. See [Doc. 33 at ¶ 16]. Plaintiff, a former security guard employee of Defendant, alleges that she and other security guards were required to arrive at work approximately ten to fifteen minutes prior to the scheduled shifts to receive security information from guards working the previous shift, but were not paid for this time. [Id. at ¶¶ 17, 22-23, 24, 29]. Defendant, however, disputes that Plaintiff and other security guards were not properly compensated for their time. [Doc. 35 at ¶¶ 24, 29]. In addition, Defendant asserts that it actually prohibits off-the-clock work, including for “pass down” sessions, and further asserts that any pre-shift work performed by Plaintiff or other guards was “noncompsensable, de minimis time.” [Id. at 11].

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Bluebook (online)
Logan v. United American Security, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/logan-v-united-american-security-llc-cod-2022.