In the case of Mpia v. Healthmate International, LLC., Josue Mpia filed a lawsuit against Healthmate International (wholesale healthcare and medical supply company), Xiang Chen, and Qianhui Gai for failure to provide overtime compensation. Mpia claimed that he was hired by Chen as a videographer for Healthcare International but was also required to perform work for Chen’s other companies.
This lawsuit was scheduled for a trial multiple times, but it was postponed due to the COVID-19 pandemic. Eventually, they participated in a settlement conference and reached an agreement to settle the case. Both parties presented the court with a Release and Settlement Agreement and requested approval of the settlement.
To approve the settlement, the court had to determine if the proposed settlement was fair and equitable and if it included reasonable attorney fees. In this case, there were disputes regarding the number of hours Mpia worked, whether some hours were for another employer, the existence of an overtime policy, a notice of failure to pay overtime, individual liability of Chen and Gao, and the computation of wages owed. The court found that these factors constituted a bona fide dispute.
The settlement agreement included a reasonable attorney’s fee of $14,698, which was found to be reasonable based on the factors and billing records that were presented.
Ultimately, the court granted the parties Joint Motion for Approval of the Fair Labor Standards Act Settlement, and the parties were instructed to submit a joint stipulation of dismissal for the case.
Key lessons from this case:
- Proving the existence of a bona fide dispute involves providing information about the nature of the dispute, the employer’s business, the type of work performed, and the reasons for disputing the plaintiff’s right to overtime pay.
- Parties involved in an FLSA case may engage in mediation or settlement conferences to resolve the dispute before proceeding to trial.
- Employers should have clear policies in place regarding overtime work and obtain written supervisor approval if overtime is required.
If you want to know more about overtime regulations, read our guide on Kansas Overtime Laws.
