Salami v. B S D Food, LLC

Background

Mohamed Salami sued B S D Food LLC, doing business as Bagel D’Lox, and Nelson Buchinger under the Fair Labor Standards Act and New York Labor Law. Salami alleged that he worked approximately 54 hours per week as a cashier, was not paid time-and-a-half for overtime, did not receive required wage notices, and was not properly paid after receiving a raise from $12.00 to $13.00 per hour. He also alleged that Buchinger fired him after Salami complained about being denied overtime.

The defendants denied Salami’s claims. The parties participated in court-referred mediation, and the mediator reported that they had reached an agreement on all issues. They then submitted a proposed settlement for court approval.

Settlement Amount and Fairness

The proposed agreement required the defendants to pay Salami $18,000. Salami estimated that his unpaid wage difference totaled $6,403.35. Because the court found no evidence that the defendants acted in good faith and had objectively reasonable grounds for believing their conduct complied with the Fair Labor Standards Act, it found doubled damages appropriate and approved $12,806.70 in liquidated damages for the wage claims.

Salami also alleged that the defendants failed to post required wage notices. The court noted that New York law permits damages of up to $5,000 for that violation and found the amount included for the notice claim reasonable. The settlement provided no damages for Salami’s retaliation claim. The parties regarded that claim as weaker, and the court concluded that settling it avoided the expense, uncertainty, and risk of further litigation.

Other Settlement Terms

The court found that the settlement was reached through arm’s-length bargaining between experienced counsel after mediation, with no evidence of fraud or collusion. It was also unaware of other similarly situated employees who would be affected by the settlement.

The agreement contained a release of claims against the defendants and related persons and entities. Although broad, the release was limited to claims arising from the factual conduct at issue in the case, including wage, compensation, and related claims. The court found that limitation acceptable under the governing standard.

Attorneys’ Fees

Salami’s counsel requested $6,235.10 in attorneys’ fees and costs, representing one-third of the total settlement plus costs under the retainer agreement. Counsel submitted billing records, and the court found that the request was reasonable because the records supported the award, counsel had spent substantial time on the case, the requested amount was consistent with common practice, and Salami had agreed to the fee arrangement.

Disposition

Judge Kenneth M. Karas approved the parties’ settlement. The court directed the Clerk of Court to close the case. The opinion approved the settlement rather than deciding the underlying wage, notice, or retaliation claims after trial or summary judgment.