Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_06-cv-02887/USCOURTS-azd-2_06-cv-02887-10/pdf.json

Nature of Suit Code: 710
Nature of Suit: Fair Labor Standards Act
Cause of Action: 15:2(a) Fair Labor Standards Act

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WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Dixie Baker, 

Plaintiff, 

vs.

D.A.R.A. II, Inc., an Arizona Corporation,

Kenneth Presutti, a single man; Cyndee

Presutti, a single woman; Jesse and Dara

Wintersteen, husband and wife; and

Jeffery Presutti, a single man, 

Defendants

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No. CV-06-2887-PHX-LOA

ORDER

This matter is before the Court on the parties’ Joint Motion to Approve

Settlement. (docket # 99) 

Plaintiff commenced this action in 2006 seeking payment of overtime

wages allegedly due for the prior three-year period pursuant to the Fair Labor Standards

Act (“FLSA”). Defendants have denied Plaintiff’s allegations, claiming Plaintiff was

compensated for all hours worked. The parties now advise the Court that they have

reached a settlement. 

The FLSA was enacted to protect workers from substandard wages and

oppressive working hours. Barrentine v. Arkansas-Best Freight System, 450 U.S. 728

(1981). In view of the inequalities in bargaining power between employees and

employers, Congress made the provisions of FLSA mandatory. Brooklyn Savings Bank v.

Case 2:06-cv-02887-LOA Document 101 Filed 10/27/08 Page 1 of 3
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O’Neil, 324 U.S. 697 (1945). Thus, in Lynn’s Food Stores, Inc. v. United States, 679

F.2d 1350 (11th Cir. 1982), the Eleventh Circuit held that: 

There are only two ways in which back wage claims arising under

the FLSA can be settled or compromised by employees. First, under

section 216(c), the Secretary of Labor is authorized to supervise 

payment to employees of unpaid wages owed to them. An employee

who accepts such a payment supervised by the Secretary thereby 

waives his right to bring suit for both the unpaid wages and for

liquidated damages, provided the employer pays in full the back

wages. 

The only other route for compromise of FLSA claims is provided in

the context of suits brought directly by employees against their

employer under section 216(b) to recover back wages for FLSA

violations. When employees bring a private action for back wages

under the FLSA, and present to the district court a proposed

settlement, the district court may enter a stipulated judgment after

scrutinizing the settlement for fairness.

Lynn’s, 679 F.2d at 1352-53 (emphasis added). 

Generally, the Court does not rule on a private settlement agreement

negotiated between the parties. However, because Plaintiff brings this action pursuant to

the FLSA, the parties must seek approval of the settlement agreement to ensure that it is

enforceable. Id. The Court may approve a settlement agreement if it reflects a

“reasonable compromise over the issues.” Lynn’s, 679 F.2d at 1354. 

The Court has reviewed the proposed Settlement Agreement and finds that

it reflects a fair and reasonable resolution of the issues in this case. Defendants

consistently denied all allegations, claiming Plaintiff was compensated for all hours

worked at the proper statutory rate under the FLSA. Additionally, even if Defendants

conceded liability, Plaintiff would have faced difficulty establishing the number of hours

she worked in 2003 and 2004. There was also a bona fide dispute regarding Plaintiff’s

regular rate of pay. (see docket # 45) 

After consideration of this matter,

IT IS ORDERED that the Joint Motion to Approve Settlement (docket #

99) is GRANTED. The Court finds the Settlement Agreement is a fair and reasonable

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resolution of a bona fide dispute over wages owed pursuant to the Fair Labor Standards

Act, and accordingly, the Settlement Agreement is hereby approved. 

IT IS FURTHER ORDERED that on or before October 31, 2008, the

parties shall filed their Stipulated Judgment in favor of Plaintiff Dixie Baker against

Defendant Kenneth Presutti and a Stipulation for Dismissal with prejudice against all

other Defendants. 

Dated this 27th day of October, 2008.

Case 2:06-cv-02887-LOA Document 101 Filed 10/27/08 Page 3 of 3