Santiago v. City of New York

Background

The plaintiffs are eleven individuals who currently or formerly worked for the City of New York’s Department of Homeless Services as Motor Vehicle Operators and Laborers. They alleged violations of the Fair Labor Standards Act (FLSA), including failure to pay for work performed before and after shifts, overtime worked during meal periods, and other overtime; failure to calculate the regular rate used for overtime correctly; and late payment of overtime.

The parties exchanged payroll and timekeeping data during settlement negotiations and reached an agreement in principle before a scheduled settlement conference. They jointly asked the court to approve the proposed settlement under the standards used for FLSA settlements.

Settlement Terms

The agreement requires the City to pay a total of $185,891.00. Of that amount, $59,119.00 is backpay to be divided among the plaintiffs. The remaining $126,772.00 consists of $57,954.33 in liquidated damages, meaning additional damages available under the FLSA; $2,000.00 in service awards of $1,000.00 each to two plaintiffs who participated in settlement negotiations; $7,281.00 in counsel’s out-of-pocket expenses; and $59,536.67 in attorneys’ fees.

The attorneys’ fees represented one-third of the settlement amount, after expenses. The settlement amount was based on the plaintiffs’ expert’s calculations, which the City’s expert reviewed and analyzed, and equaled more than 70% of the plaintiffs’ claimed damages for a three-year period. In exchange, the plaintiffs agreed to release the City from wage-and-hour claims through July 31, 2025. All plaintiffs were notified of the agreement, the amount each would receive, and the calculation of that amount. No plaintiff objected.

Court’s Analysis and Ruling

After reviewing the motion, agreement, and supporting materials, the court found that all terms—including the damages allocation, service awards, attorneys’ fees, and expenses—appeared fair and reasonable under the circumstances. The court found no indication of overreaching or deceptive conduct in the fee arrangements, determined that the one-third contingency fee was reasonable, and found the documented expenses reasonable.

Judge Sarah L. Cave approved the agreement. The action was dismissed with prejudice and without costs except as provided in the agreement. The court retained jurisdiction to enforce the agreement, declared any pending motions moot, directed that the settlement motion be marked “granted,” and directed the Clerk of Court to close the case.