In the case of Bonner v. Prairie Opportunity, Incorporated, Alice Bonner filed a lawsuit against her former employer, Prairie Opportunity Incorporated (Prairie) for violating the Fair Labor Standards Act (FLSA). Bonner, a former accounts payable clerk at the nonprofit organization, claimed that Prairie failed to properly reimburse her for overtime hours worked. Prairie denied these allegations and asserted that Bonner was adequately compensated for any hours she worked beyond the 40-hour threshold.
Bonner and Prairie jointly moved the court to approve a settlement agreement they had negotiated. The settlement entailed a payment of $11,000, with $3,412.50 allocated to Bonner. Half of Bonner’s share was considered wages while the other half was classified as liquidated damages.
After considering the information presented by both Bonner and Prairie, which included job descriptions, records of time worked and wages, and legal factors, the court concluded that the settlement agreement was just and reasonable. The agreement demonstrated a fair compromise that was achieved through negotiations, rather than any form of collusion.
Ultimately, the court approved the joint motion for the settlement agreement and granted dismissal of the case with prejudice, meaning it cannot be refiled.
Key lessons from this case:
- Proposed settlements for overtime pay complaints must reflect a reasonable compromise over disputed issues and be fair, reasonable, and adequate.
- In an overtime pay case, an employee can be entitled to receive their owed back wages plus additional liquidated damages in the same amount.
- Employees must provide reasonable proof to show that a violation was made by their employer to claim owed back wages.
If you want to know more about overtime regulations, read our guide on Mississippi Overtime Laws.
