FLSA settlement approved for server’s wage dispute against restaurant

A federal court has approved an $18,000 settlement between former server Amanda Gayhart and Northampton Restaurants Inc. in a Fair Labor Standards Act dispute over unpaid wages.

The U.S. District Court for the Eastern District of Virginia at Norfolk granted the joint motion for settlement approval on March 19, finding that the agreement resolves a bona fide dispute over FLSA provisions.

U.S. District Judge Raymond Walker, who presided over the case, determined that all six factors considered in evaluating FLSA settlements weighed in favor of approval. The court found the parties had sufficient information to make informed decisions despite limited discovery in the current case.

“The parties relied on extensive discovery in a prior case in which the same attorney represented 52 servers asserting identical claims against NRI,” the court noted in its analysis.

The settlement provides Gayhart with compensation representing approximately 100% of her potential recovery for unpaid wages and 50% of possible liquidated damages. She had estimated her potential FLSA recovery at $21,216 for a three-year damages claim.

Northampton Restaurants had asserted six affirmative defenses against Gayhart’s claims, creating uncertainty about her likelihood of success if litigation continued.

The agreement includes $7,600 in attorney’s fees, which the court deemed “appropriate and reasonable” after determining the amount fell below the minimally adjusted lodestar figure. The restaurant did not object to the fee request.

The settlement was reached through what the court described as “good-faith, arms-length negotiations” with no evidence of fraud or collusion.

The case was filed under docket number 2:24-cv-488 in the EDVA at Norfolk.