Perez v. EONS - Greek Food For Life LLC

Background

The court was advised that the parties had reached a settlement in this Fair Labor Standards Act (FLSA) case. The opinion does not state the settlement’s terms or the amount of any proposed payment. The plaintiff is identified as Catarino Perez, acting on behalf of himself, FLSA collective plaintiffs, and the class. The defendants are EONS - Greek Food For Life, LLC; EONS 2 Ave LLC; EONS Restaurant Holding LLC; EONS Forever LLC; EONS Montvale LLC; EONS Paramus LLC; KIG NYVA EONS LLC; and George Georgiades.

Settlement-approval requirements

The court stated that the action could not be dismissed with prejudice unless the settlement agreement was approved either by the court or by the Department of Labor. If the parties wanted dismissal with prejudice, they had to file a joint letter motion asking the court to approve the agreement or provide documentation of Department of Labor approval. The filing, including the settlement agreement, had to be placed on the public docket by June 26, 2020.

The court required any approval request to explain why the proposed settlement was fair and reasonable. At a minimum, the request had to address the plaintiff’s possible recovery; the burdens and expenses the settlement would avoid; the litigation risks; whether experienced counsel negotiated the agreement at arm’s length; and the possibility of fraud or collusion. It also had to address whether there was a genuine dispute about the number of hours worked or the compensation owed, and how much the plaintiff’s attorney would seek in fees.

Any request for attorney fees had to include contemporaneous billing records showing, for each attorney, the date, hours worked, and nature of the work. The court also stated that, absent special circumstances, it would not approve an agreement filed under seal or in redacted form. Absent compelling circumstances, it would not approve an agreement containing broad nondisclosure provisions or releases of claims unrelated to FLSA issues.

Other instructions and disposition

The parties had asked for referral to a magistrate judge to review the settlement. The court explained that the parties could consent to a magistrate judge’s authority over the action by completing the required consent form. The court stated that any pending motions were moot and vacated all conferences.

Judge Analisa Torres did not approve the settlement, dismiss the action with prejudice, or decide the underlying FLSA claims in this order. Instead, the order set the conditions and filing deadline for seeking settlement approval and possible dismissal with prejudice.