Nesbeth v. New York City Management LLC

Background

This was a wage-and-hour case under the Fair Labor Standards Act, a federal law governing matters such as employee pay and working time. Nicholas Nesbeth and the defendants submitted a proposed settlement and a joint letter-motion asking the court to approve it. The parties consented to review by United States Magistrate Judge Sarah L. Cave under 28 U.S.C. § 636(c) and Federal Rule of Civil Procedure 73.

Settlement review

The court reviewed the joint letter-motion and settlement agreement, and it participated in two lengthy conferences and several later telephone conferences with the parties. Under the Second Circuit's decision in Cheeks v. Freeport Pancake House, Inc., courts review proposed settlements in Fair Labor Standards Act cases. The court stated that such settlements generally receive a strong presumption of fairness. It also considered the possibility that certain defendants could face difficult financial circumstances worsened by the economic downturn resulting from the COVID-19 pandemic if the settlement were not completed.

The court found that all settlement terms, including the allocation of attorney's fees and costs, appeared fair and reasonable under the circumstances and the factors identified in Wolinsky v. Scholastic Inc. The court also explained that it construed the plaintiff's agreement as including an agreement not to knowingly seek future employment with the entities released under the settlement agreement.

Disposition

The court approved the settlement. It dismissed the action with prejudice and without costs except as stated in the settlement agreement. The court retained jurisdiction to enforce the settlement agreement, ruled that any pending motions were moot, directed the Clerk of Court to mark one docket entry as granted, and ordered the case closed.