Akberova v. Olivier Cheng Catering and Events, LLC

Background

The court was advised that Madina Akberova and Olivier Cheng Catering and Events, LLC had reached a settlement in this Fair Labor Standards Act (FLSA) action. The order does not describe the underlying wage claims, the settlement amount, or the settlement’s other terms.

Settlement-Approval Requirement

The court stated that the action would not be dismissed with prejudice based on the settlement unless the settlement agreement was approved either by the court or by the Department of Labor. If the parties sought dismissal with prejudice, they had to file by May 13, 2025, either a joint letter motion asking the court to approve the agreement, together with the settlement agreement, or documentation showing Department of Labor approval.

The joint letter had to explain why the proposed settlement was fair and reasonable. It also had to address: (1) the plaintiff’s possible recovery; (2) the burdens and expenses the settlement would avoid; (3) the seriousness of the litigation risks; (4) whether experienced counsel negotiated the agreement at arm’s length; and (5) the possibility of fraud or collusion. The letter also had to discuss whether there was a genuine dispute about the hours worked or compensation owed and how much of the settlement the plaintiff’s attorney would seek as fees.

Attorney’s Fees and Settlement Terms

Any request for attorney’s fees had to include supporting documentation. The court identified contemporaneous billing records as documenting, for each attorney, the date, time spent, and work performed. The court also stated that, absent special circumstances, it would not approve a settlement filed under seal or in redacted form. Absent compelling circumstances, it would not approve broad nondisclosure provisions or releases of claims unrelated to FLSA issues.

Other Rulings

The parties could voluntarily consent to proceed before Magistrate Judge Sarah Netburn, who would then oversee settlement approval. The deadline to file the fully executed consent and reference form was April 30, 2025. The order stated that the parties could withhold consent without negative consequences. Any pending motions were declared moot, and all conferences were vacated. The order stated that an appeal would go directly to the United States Court of Appeals for the Second Circuit.

Disposition

The court did not approve the settlement or dismiss the action with prejudice in this order. Instead, Judge Analisa Torres set the conditions and deadlines for seeking approval and stated that pending motions were moot and conferences were vacated.