Polanco v. 70 Sherman Dry Cleaners Inc.

Background

Juan Polanco brought an action for damages under the Fair Labor Standards Act, a federal wage-and-hour law, and the New York Labor Law against 70 Sherman Dry Cleaners Inc. and other defendants. The parties jointly asked the court to approve their Settlement Agreement and Release of Wage and Hour Claims. The fully signed agreement was submitted on April 1, 2021.

Settlement Review

The court explained that it had to determine whether the settlement of the Fair Labor Standards Act case was fair, reasonable, and reached through arm’s-length negotiations rather than employer overreaching. It reviewed the agreement and the parties’ letter, considering the prior proceedings, the risks, burdens, and costs of continuing the case, the possible range of recovery, the bargaining process, attorneys’ fees, and the possibility of fraud or collusion.

The court noted that the agreement contained no confidentiality or non-disparagement restrictions, that its release was narrowly limited to wage-and-hour claims, and that the attorneys’ fees fell within a fair and reasonable range. The court found the settlement fair and reasonable and approved it.

Disposition

Because the case was resolved by settlement, the court dismissed and discontinued it in its entirety, with prejudice, without costs or fees to any party except as provided in the settlement agreement. The Clerk of Court was directed to terminate all motions and deadlines and close the case. Robert W. Lehrburger entered the order as the United States Magistrate Judge.