Skadden, Arps, Slate, Meagher & Flom moved a step closer to ending a contentious and closely watched labor fight this week when it agreed to settle a proposed collective action that sought overtime pay for former contract lawyers at the firm.

The deal, unveiled in a court filing on Tuesday, would resolve a Fair Labor Standards Act lawsuit brought against Skadden and co-defendant Tower Legal Staffing Inc. in July 2013. The proposed settlement calls for a $75,000 payout to named plaintiff David Lola and two other contract lawyers who performed document review for Skadden.

Tower, a staffing outlet that hired and formally paid the contract lawyers' regular wages, will cover the full costs of the settlement, according to court documents. The agreement is subject to court approval.