Premnauth v. 450 Concord Avenue Corp.

Background

Ann Premnauth brought this action under the Fair Labor Standards Act, a federal law governing matters including minimum wages and overtime. The court was informed that the parties had reached a settlement in principle.

Court’s directive

The court explained that, under Second Circuit law, it must scrutinize an Fair Labor Standards Act settlement—including any proposed attorney-fee award—to determine whether it is fair. The court ordered the parties to submit the settlement agreement and a joint letter by November 19, 2020. The letter must explain the basis for the proposed settlement and address the fairness factors discussed in Wolinsky v. Scholastic, Inc.

The court also required the parties to address any confidentiality, non-disparagement, or release provisions; any incentive payment to Premnauth; and any attorney-fee award to her counsel. If fees were requested, the parties were directed to provide supporting documentation. The court stated that merely identifying the fee as a proportion of the total settlement was not enough. Adequate support would normally include contemporaneous time records showing, for each attorney, the date, hours worked, and nature of the work. The court warned that insufficient documentation could result in rejection of the proposed fee award.

Disposition

The court ordered submission of the settlement materials and did not approve or reject the proposed settlement in this order. The order was entered by Judge Lewis J. Liman.