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Judge touts public interest in refusing to seal FLSA settlement

SOUTHEAST TEXAS RECORD

Thursday, November 28, 2024

Judge touts public interest in refusing to seal FLSA settlement

Federal Court
Webp edisonandrew

Edison | https://www.txs.uscourts.gov/

GALVESTON - A Texas judge won't keep secret a settlement between a man and Professional Sprinklers LLC in a case that alleges labor code violations.

U.S. Magistrate Judge Andrew Edison on Nov. 5 notified lawyers that they better put the settlement agreement on the docket for all to see. Edison noted his obligation "to zealously guard the public's right of access to judicial records."

The sides can withdraw the settlement if they want, he ruled. The case alleges Jose Urbina wasn't paid overtime wages and was brought under the Fair Labor Standards Act earlier this year.

The Fifth Circuit has held parties can reach private compromises to FLSA claims, as long as there is no dispute as to the amount of hours worked or compensation due that requires court approval.

Parties have increasingly asked judges to approve settlements in FLSA claims out of "an abundance of caution," Edison wrote.

"If the court is going to approve - or disapprove - a settlement of any type, the public should be afforded the opportunity to view the underlying settlement agreement at issue," Edison wrote.

"Otherwise, the public cannot determine whether the decision approving - or disapproving - the settlement is justified. Sealing a settlement agreement submitted to a district court for approval undermines the public's faith and confidence in our justice system."

Edison wrote he could think of no reason to seal FLSA settlements.

"Parties' aversion to airing their dirty laundry does not outweigh the presumption of public access," he wrote. 

The sides aren't obligated to file the settlement with the court unless they want a "stamp of approval."

"In such circumstances, the settlement agreement should be part of the public record, available for anyone to review," Edison wrote. "The public has a fundamental right to access judicial records."

Urbina installed sprinkler systems and was required to work an average of 60 hours per week, his suit says. He was paid $11 per hour in 2021 and $13 per hour in 2022.

"Defendants did not pay Plaintiff not less than 1.5 times the regular rate at which he was employed during the hours worked in excess of 40 hours per week," the suit says.

James Dore of Justicia Laboral represents Urbina. They filed their notice of settlement Oct. 8, attaching a sealed copy of the agreement.

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