Macas v. Olive Nail & Spa Inc.

Background

Mayra Joana Macas brought the action individually and on behalf of all others similarly situated against Olive Nail & Spa Inc., Esther Lee, Paul Lee, and Kyung Soon Yi. She asserted claims under the Fair Labor Standards Act, a federal wage law, and the New York Labor Law. The claims concerned minimum wages, overtime, spread-of-hours pay, notices, recordkeeping, and wage statements.

The parties sought court approval of their settlement. In this circuit, parties cannot privately settle Fair Labor Standards Act claims with prejudice without approval from the court or the Department of Labor. The court therefore evaluated whether the agreement was fair and reasonable.

Settlement Review

The court had rejected the parties’ earlier proposed settlement on December 9, 2020. Although the court found the proposed attorneys’ fees and the plaintiff’s obligations reasonable, it could not sufficiently assess how the parties had calculated the settlement figure.

In the renewed application, Macas submitted records showing her pay rate and wages allegedly owed, along with an estimate of additional amounts for unpaid spread-of-hours pay, liquidated damages, and prejudgment interest. The proposed settlement represented approximately 46% of the maximum possible recovery. The parties also stated that they preferred to settle before discovery to avoid the costs and risks of extended litigation.

Ruling

The court found the settlement amount fair and reasonable under the circumstances and concluded that the agreement complied with the governing requirements. Judge Edgardo Ramos approved the settlement agreement, dismissed the case with prejudice, and directed the clerk of court to close the case.

The opinion does not state the settlement’s dollar amount or separately describe how the settlement proceeds were allocated.