BALTIMORE (LN) — U.S. District Judge James K. Bredar granted final collective certification and approved a $0.76 million settlement in Ebony Hays v. LRW Traffic Systems LLC, ruling that the settlement terms are fair and reasonable and that the collective action covers similarly situated workers.
The suit, filed on behalf of current and former flaggers, alleged violations of the Fair Labor Standards Act, the Maryland Wage and Hour Law, and the Maryland Wage Payment and Collection Law. Plaintiffs also alleged retaliation for seeking owed compensation.
The settlement allocates $0.76 million to resolve claims against LRW Traffic Systems, its president Robert Scott-Copies, Stella May Contracting, and B. Frank Joy.
Under the agreement, eligible workers who opt in can receive up to $0.42 million. The five named plaintiffs will receive $5,000 each in service payments, and nine plaintiffs named for retaliation purposes will receive $95,000 in damages.
Plaintiffs’ counsel will receive $0.22 million in fees and expenses, with settlement administration costs drawn.
Bredar determined that a fairness hearing was unnecessary, noting that FLSA settlements do not extinguish the claims of non-participating members way Rule 23 class actions do.
The judge concluded that the collective was appropriately certified, noting that flaggers shared similar job responsibilities and were subject to common wage practices. He also noted that defendants raised no individualized defenses that would complicate the settlement.
The court incorporated its prior finding that a bona fide dispute existed over the FLSA provisions and that the settlement provided a fair resolution.
The case was filed in the U.S. District Court for the District of Maryland.