Mazzara v. Kill Dare, Corp.

Background

Iolanda Mazzara brought a putative class and collective action against Kill Dare, Corp., doing business as Allure, and Joseph Juliano. She alleged violations of the Fair Labor Standards Act (FLSA), New York Labor Law, and related New York State Department of Labor regulations. The alleged violations included failure to pay the lawful minimum wage, improper wage deductions, unlawful retention of tips, failure to pay spread-of-hours premiums, late wage payments, and defective wage notices and wage statements.

The parties jointly moved for approval of their settlement. The court explained that FLSA claims generally cannot be privately settled with prejudice without approval by the court or the Department of Labor. The court therefore evaluated whether the agreement was fair and reasonable under the circumstances.

Settlement Amount and Recovery

The agreement provided for a total recovery of $17,000. Mazzara’s counsel sought $5,477.26 in attorneys’ fees, described as one third of the settlement, plus $568.20 in costs. Mazzara would receive $10,954.53 after those deductions.

Mazzara estimated that her possible recovery ranged from $0 to $55,976.68. She calculated $18,460.34 in unpaid wages, tips, and improper deductions, and also claimed liquidated damages, damages for late payments, and statutory damages for invalid wage notices and wage statements. The opinion states that, under the settlement, she would recover 92% of her claimed unpaid wages before attorneys’ fees and costs.

The defendants disputed Mazzara’s calculations and maintained that they had no record of her working for Allure, which they argued meant she was not entitled to damages. The parties also agreed that some evidence was unavailable and that proceeding with the litigation therefore involved significant risk. The court concluded that the settlement resolved genuine disputes and represented a reasonable compromise.

Attorneys’ Fees and Costs

The court approved the requested fees and costs. Counsel submitted records showing 33.8 hours of work at a $400 hourly rate, producing a lodestar of $13,520. A lodestar is the reasonable hourly rate multiplied by the reasonable number of hours worked. The requested $5,477.26 fee was less than half of that lodestar. The court also found the $568.20 in costs, consisting of the electronic filing fee and service-of-process costs, reasonable.

Other Settlement Terms

The court found the remaining provisions fair and reasonable. The agreement did not contain objectionable confidentiality or non-disparagement provisions. Its wage-and-hour release covered only claims brought, or that could have been brought, in this action under the FLSA, New York Labor Law, and related regulations and statutes. The mutual non-disparagement clause was permissible because it included an exception for truthful statements.

Disposition

The court found the proposed settlement agreement fair and reasonable and approved it. The court granted the motion for settlement approval and dismissed the case with prejudice. The clerk was directed to terminate the motion and close the case.