Delgado Escamilla v. 48 West 21st Street Corp.

Background

The court was advised that the parties had reached a settlement in this Fair Labor Standards Act (FLSA) case. The opinion does not provide the settlement amount or other settlement terms.

Court’s Analysis

The court explained that parties may not privately settle FLSA claims without approval from the district court or the Department of Labor. The court must determine whether the settlement is fair and reasonable by considering the total circumstances, including the plaintiff’s possible recovery, the burdens and expenses the settlement would avoid, the litigation risks, whether experienced counsel negotiated at arm’s length, and the possibility of fraud or collusion.

If the settlement includes attorney fees, the court must separately assess whether those fees are reasonable. Counsel must provide factual support for any fee award, including contemporaneous billing records showing the date, hours worked, and nature of the work for each attorney.

Order

The court ordered the parties to provide the settlement terms within 30 days. It also ordered them to submit a joint letter of no more than five pages explaining why the settlement is a fair and reasonable compromise, including information about the five listed factors. If the agreement includes attorney fees, the parties must submit supporting evidence, including the required billing records. Judge Vernon S. Broderick did not state the settlement terms or grant final approval in this order.