Vazquez v. 33 Captain's Cafe, LLC

Background

Orlando Vazquez sued 33 Captain’s Cafe, LLC, doing business as Captain’s Cafe, Nadira Selimoska, and Tuncer Sari under the Fair Labor Standards Act. The parties reported that they had reached a settlement in principle.

Court’s analysis

The court explained that, under current Second Circuit law, it must review an agreement resolving a Fair Labor Standards Act case, including any proposed attorney’s-fee award, to determine whether the settlement is fair. The parties had to explain the basis for the proposed settlement and address the fairness factors discussed in Wolinsky v. Scholastic, Inc. The required explanation also had to cover any confidentiality, non-disparagement, or release provisions, as well as any incentive payment to Vazquez.

For any proposed attorney’s-fee award, the parties had to provide appropriate supporting documentation. The court stated that merely identifying the fee as a percentage of the total settlement was not enough. The documentation would normally include records showing, for each attorney, the date, hours worked, and nature of the work. Insufficient documentation could lead the court to reject the proposed fee award.

Order and effect

Judge Lewis J. Liman ordered the parties to submit a joint letter by June 2, 2021. The parties were also ordered to appear by telephone for a settlement-approval hearing on June 9, 2021, and Vazquez was required to attend, with an interpreter if necessary. The order required further information and a hearing; it did not approve or reject the proposed settlement.

Disposition

The court ordered the parties to submit the required joint letter and appear at the settlement-approval hearing.