Federal Courts Increasingly Unhappy with Proposed FLSA Settlements

Federal courts are increasingly unhappy with proposed settlements of FLSA collective actions in which attorneys’ fees are disproportionate to the back pay for plaintiffs and “class” members, as the attached decision out of the Southern District of Florida demonstrates. Such cases are not conducive to percentage contingent fee arrangements in any event, but where, as here, the suggested fee was three times the aggregate back pay, Judge Donald Graham threw a flag and ordered a replay.

Southern District of Florida Settlement (pdf)