Benitez v. 58 west llc

Background

Jose Benitez brought this action under the Fair Labor Standards Act, a federal law governing wages and working hours. The parties told the court that they had reached a settlement and attempted to voluntarily dismiss the case with prejudice, meaning the case could not be brought again in that form.

The court had previously required a joint explanation of the proposed settlement, referring to factors used to evaluate whether an FLSA settlement is fair and reasonable. After reviewing the parties’ revised letter dated March 7, 2022, the court found the settlement fair and reasonable based on the nature and scope of Benitez’s individual claim and the risks and expenses of further litigation. The court also noted that Benitez no longer worked for the defendant, which reduced concerns about pressure to give up wage claims.

Settlement and Fees

The court approved the settlement subject to one condition: any modification of the settlement agreement must be approved by the court, even if the agreement contains language allowing the parties to modify it without court approval.

Benitez also sought approval of $4,900.02 in attorney’s fees and costs. The court observed that the proposed fee was high compared with the size of Benitez’s claim and recovery, but found no basis to reduce it because there were no additional plaintiffs who had joined the case, the case was not a collective action, and the fee arrangement was between Benitez and his attorney. The court concluded that attorney’s fees equal to one-third of the recovery were appropriate. It expressly made no findings about whether counsel’s hourly rates were reasonable.

Disposition

The court approved the settlement subject to the court-approval condition for modifications. It dismissed the case with prejudice, ruled that all pending motions were moot, and directed the Clerk of Court to close the case.