GALVESTON - Nevermind, sides are telling a Texas federal magistrate judge they initially asked to approve their Fair Labor Standards Act settlement.
Following an order that touted the public's right to know, Jose Urbina and Professional Sprinklers have withdrawn their request for court approval of their agreement in a Nov. 4 filing.
Urbina alleged he was owed overtime pay for his work as a sprinkler installer, and the sides recently reached a settlement. They asked U.S. Magistrate Judge Andrew Edison for his blessing and to seal the terms.
But Edison said no, finding the public had a right to see the agreement. But he also noted they weren't required to seek court approval.
So they have withdrawn their motion for approval while filing a joint stipulation of dismissal. They ask Edison to strike the agreement from the record.
Days earlier, Edison had written his obligation was "to zealously guard the public's right of access to judicial records."
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.