Teran v. Nai Tapas Restaurant Corp.
- Ona Wang
- 1:19-cv-10134
- U.S. District Court · Southern District of New York
- 2
In Teran v. Nai Tapas Restaurant Corp., Judge Wang approved a revised wage-law settlement after removal of a restrictive mutual non-disparagement clause.
The approved settlement affects Andres Emeterio Teran, the FLSA collective plaintiffs, Nai Tapas Restaurant Corp., and Ruben Rodriguez. The court also directed that the case be closed.
What happened
In Teran v. Nai Tapas Restaurant Corp., Andres Emeterio Teran sued Nai Tapas Restaurant Corp. and Ruben Rodriguez on behalf of himself and other plaintiffs covered by a Fair Labor Standards Act wage claim. The parties proposed a settlement agreement for the court’s approval.
The court had previously declined to approve the proposed agreement because its non-disparagement provision was overly restrictive. The court had found that the agreement otherwise complied with the required settlement-review factors.
After the parties removed the mutual non-disparagement clause, Judge Ona T. Wang approved the revised settlement agreement on April 9, 2021. Judge Wang directed the Clerk of Court to terminate open motions and close the case.
The detailed version
- Teran v. Nai Tapas Restaurant Corp. · No. 1:19-cv-10134
- Ona Wang
- Apr. 9, 2021
Background
Andres Emeterio Teran brought the case on behalf of himself and Fair Labor Standards Act (FLSA) collective plaintiffs against Nai Tapas Restaurant Corp. and Ruben Rodriguez. The parties submitted a proposed settlement agreement for court approval.
Prior Review
On March 25, 2021, the court declined to approve the proposed settlement under the required review of FLSA settlements described in Cheeks v. Freeport Pancake House, Inc. The court found that the proposed agreement contained an overly restrictive non-disparagement provision. Applying the factors discussed in Wolinsky v. Scholastic Inc., the court found that the remainder of the proposed agreement complied with the applicable requirements and ordered the parties to file a revised agreement.
Ruling
On April 8, 2021, the parties filed a revised settlement agreement removing the mutual non-disparagement clause. Judge Ona T. Wang approved the revised settlement agreement. The Clerk of Court was directed to terminate any open motions and close the case.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.