Garcia Puebla v. NY Zerza Corp.

Background

Garcia Puebla brought claims under the Fair Labor Standards Act (FLSA). The parties reported that they had settled all issues. Because the Court of Appeals for the Second Circuit requires district-court or Department of Labor approval before parties privately settle FLSA claims through a stipulated dismissal, the parties jointly asked the court to approve their agreement.

The parties disagreed about the number of hours Garcia Puebla worked and the length of his employment. Garcia Puebla stated that he received a weekly salary of $600 from 2015 through March 2020. The defendants contended that his weekly salary was $450 from September 2020 through August 2021. The parties estimated that, if Garcia Puebla prevailed on all claims, he could recover approximately $333,570, including unpaid and overtime wages, an equal amount in additional damages, and unpaid spread-of-hours pay.

Settlement Approval

The settlement payment totaled $51,500. The court recognized that this amount was at the lower end of settlements approved in the district but found that the parties faced substantial factual and legal disputes. Those disputes included the number of hours worked, which individuals or corporations were Garcia Puebla’s employers, and the term of his employment. The court also considered the value of receiving an immediate recovery instead of continuing expensive litigation.

The parties represented that the agreement resulted from extensive, arm’s-length negotiations between experienced counsel through the Southern District of New York Mediation Program. The negotiations occurred during two lengthy mediation sessions, with Donald Rose, Esq. serving as mediator. The court found no indication of fraud or collusion and concluded that the agreement raised none of the fairness concerns identified in earlier FLSA settlement decisions. The settlement was therefore approved as fair and reasonable.

Attorney’s Fees and Costs

The court granted plaintiff’s counsel’s request for attorney’s fees and costs. Counsel requested $17,311.66, described as one-third of the recovery plus litigation costs. Counsel submitted detailed invoices, used attorney billing rates of $375 per hour, and provided documentation supporting the requested costs. The court found the request reasonable and adequately supported.

Other Orders and Disposition

The parties submitted a proposed agreement to dismiss the case. Under that agreement, Garcia Puebla may reopen the case within 45 days from the date of the order if the settlement is not completed. The court held that any pending motions were moot, canceled all conferences, and directed the Clerk of Court to close the case.

The order approves the settlement and resolves the settlement-approval and fee issues; it does not decide whether Garcia Puebla or the defendants would have prevailed on the underlying wage claims at trial.