Warren v. Aba Noub, Ltd.

Background

Stanley Warren brought claims under the Fair Labor Standards Act and the New York Labor Law for unpaid overtime premium pay and alleged failures to provide proper wage notices. The complaint described the case as a collective and class action. The parties later reached a settlement and jointly asked the court to approve it.

Settlement review

The court reviewed the agreement under the required standards for Fair Labor Standards Act settlements. It considered whether the agreement was fair and reasonable, including the possible recovery, the burdens and expenses of continuing the case, litigation risks, the parties’ negotiations, and the possibility of fraud or collusion.

The total settlement was $42,500. Warren’s damages analysis estimated $28,130.36 in unpaid overtime wages and $10,000 in statutory damages for wage notices and statements. The settlement did not compensate Warren for liquidated damages or penalties and only partially compensated attorney’s fees, but the parties identified unresolved legal and factual disputes and the expected costs of discovery and trial.

The agreement allocated $14,749.99—approximately one-third of the settlement—to Warren’s counsel. Counsel provided contemporaneous time records supporting the requested fee. The court found the fee reasonable.

The release covered claims related to the action and federal, state, or local wage-and-hour laws. The court found that limitation sufficiently narrow. The agreement also contained a mutual non-disparagement clause with an exception for truthful statements, which the court found acceptable.

Ruling and case status

The court approved the settlement agreement. Because Warren settled individually and had not moved to certify a collective or class action, the court directed the Clerk to amend the caption to identify Stanley Warren as the plaintiff and Aba Noub, Ltd. and the other defendants as defendants. The court then directed the Clerk to close the case.