Andrew v. 64 Fulton St. Food Corp.

Background

Omar Andrew, Rodrigo Vasquez, and Washington Calle brought this Fair Labor Standards Act (FLSA) case on behalf of themselves, an FLSA collective, and a class against 64 Fulton St. Food Corp., doing business as Seaport Deli. The court was advised that the parties had reached a settlement.

Settlement-approval requirement

The court ordered that the action not be dismissed with prejudice based on the settlement unless the settlement agreement was approved either by the court or by the Department of Labor. If the parties sought dismissal with prejudice, they had to file a joint letter motion asking the court to approve the settlement or provide documentation of Department of Labor approval. The filing, including the settlement agreement, was due on the public docket by October 15, 2021.

The court required any approval request to explain why the proposed settlement was fair and reasonable. The request had to discuss the plaintiffs’ possible recovery, the burdens and expenses the settlement would avoid, the litigation risks, whether experienced counsel negotiated at arm’s length, and the possibility of fraud or collusion. It also had to address whether a genuine dispute existed about the hours worked or compensation owed and how much the plaintiffs’ attorney would seek in fees.

Attorney fees and settlement terms

Any request for attorney fees had to include contemporaneous billing records showing, for each attorney, the date, hours worked, and nature of the work. The court also stated that, absent special circumstances, it would not approve a settlement filed under seal or in redacted form. Absent compelling circumstances, it would not approve a settlement containing broad nondisclosure provisions or releases of claims unrelated to FLSA issues.

Disposition

Judge Analisa Torres stated that any pending motions were moot and vacated all conferences. The order did not itself approve the settlement or dismiss the action with prejudice.