Sabrina Shadi Comments on Increased Judicial Scrutiny of Wage Settlements

News / December 8, 2017

Partner Sabrina Shadi is quoted in an article published Dec. 7, 2017, by Bloomberg BNA. The article, “Scrutiny of Wage Settlements Reshapes Litigation Strategy,” discusses how courts seem to examining Fair Labor Standards Acts (FLSA) settlements, creating pressure to settle these cases before they get to court.

Shadi told Bloomberg that more attorneys have taken on these cases because of the potential for lucrative settlements in FLSA collective actions, and as a result, “a lot more people on both sides who have taken these cases on” lack employment law expertise. Some lawyers new to the employment field are “agreeing to terms that somebody more experienced would suspect will present challenges in getting approval” without realizing there “are holes” in the settlement agreement. Judges must do more work to “make sure that the interests of the class are being protected,” she said, adding that the courts are concerned about the potential for excessive attorneys’ fees and enhanced awards to named plaintiffs.

Read the article (registration required).