Ramales Perez v. East Side Top Cleaners LLC

Background

Juana Ramales Perez brought this action individually and on behalf of others similarly situated under the Fair Labor Standards Act, a federal wage-and-hour law. The parties informed the court that they had reached a settlement in principle.

Court’s Order

The court explained that, under Second Circuit precedent, settlements in Fair Labor Standards Act cases—including proposed attorney-fee awards—must be reviewed for fairness. The court ordered the parties to submit the settlement agreement and a joint letter by March 4, 2021. The letter had to explain the basis for the proposed settlement and why it was fair and reasonable, with reference to the factors identified in Wolinsky v. Scholastic, Inc.

The parties also had to address any confidentiality provisions, non-disparagement provisions, releases, incentive payments to the plaintiff, and attorney-fee award to plaintiff’s counsel. For any fee request, the court required adequate supporting documentation, ordinarily including contemporaneous records showing each attorney’s date of work, hours spent, and the nature of the work. The court warned that insufficient documentation could result in rejection of the proposed fee award.

The court canceled the status conference scheduled for February 4, 2021, and scheduled a fairness hearing for March 11, 2021, at 10:00 a.m. The order required the parties to participate by telephone.

Disposition and Significance

The order required further submissions and scheduled a fairness hearing; it did not state that the settlement was approved. Judge Lewis J. Liman’s order addressed the process for reviewing the proposed settlement and fee award, not the merits of the underlying wage claims.