Miguel v. D & G Auto Repair, Inc.

Background

Porfirio Miguel brought claims against D & G Auto Repair, Inc. and Glenn Pantore under the Fair Labor Standards Act (FLSA) and New York Labor Law. On August 21, 2021, the parties filed a settlement agreement and a joint request for court approval.

Settlement Review

The court reviewed factors including the parties’ valuation of the claims, the risks and costs of continued litigation, and the fact that Miguel was represented by counsel. The agreement did not include confidentiality or non-disparagement provisions. Defendants agreed to pay slightly more than double Miguel’s claimed unpaid wages of $5,590.50, consisting of $120 in unpaid minimum wages and $5,470.50 in unpaid overtime wages.

The court noted a genuine dispute about liquidated damages and the number of hours Miguel worked during the relevant period. The parties also wanted to resolve the case early and avoid the costs and uncertainty of continued litigation. The release in the agreement was limited to wage-and-hour claims existing when the agreement was signed.

The court found the settlement fair and reasonable and the result of arm’s-length negotiations, rather than fraud or collusion. It also found that attorneys’ fees equal to one-third of the total recovery after costs were fair and reasonable under the circumstances.

Ruling

Judge Vincent L. Briccetti approved the parties’ settlement agreement, dismissed the case, and instructed the Clerk to close the case. The order did not state whether the dismissal was with or without prejudice.