Town approves $50,000 settlement to resolve federal overtime claim; council splits 4-1

The Fort Myers Beach Town Council voted Oct. 6 to approve a settlement totaling $50,000 in a federal Fair Labor Standards Act (FLSA) claim brought by a former employee, with council approval recorded 4–1.

Town Attorney Nancy Stuprich and outside counsel said the town faced a potentially costly and document-intensive litigation. Stuprich and town staff reviewed thousands of pages of documents and concluded the most prudent financial choice was to settle early rather than proceed through depositions and extensive litigation, where the town could be liable for the other side's attorney's fees even on a nominal verdict.

The settlement agreement approved by the council includes a release of claims, a payment allocation and an explicit statement that the town does not admit liability. Town Human Resources Director Talisa Olivera explained the underlying agreement at issue dated to May 2022 and predated current leadership. Mayor Dan Allers and other council members said they viewed the settlement as a business decision to cut litigation risk; one council member voted no on principle and to emphasize concern about prior contracting practices. The motion carried 4–1.