Guzman v. RCI PLBG, INC.
- Robert Lehrburger
- 1:20-cv-09513
- U.S. District Court · Southern District of New York
- 2
In Guzman v. RCI PLBG, INC., Judge Lehrburger approved the parties’ fair and reasonable wage-settlement agreement and ordered the case closed.
The settlement affected Jose Enrique Guzman, the other similarly situated people represented in the action, and the defendants, including RCI PLBG, INC. The Clerk of Court was directed to close the case.
What happened
Guzman v. RCI PLBG, INC. involved claims for money damages under the Fair Labor Standards Act and New York Labor Law. The plaintiff brought the case individually and on behalf of other similarly situated people against RCI PLBG, INC. and other defendants.
The parties jointly asked the court to approve their settlement. The court reviewed the agreement and the parties’ explanation, considering the risks and costs of continuing the case, possible recovery, the negotiation process, and the possibility of fraud or collusion. The agreement limited the release of claims to Fair Labor Standards Act and New York Labor Law claims, included a mutual nondisparagement provision with exceptions, and provided reasonable attorney’s fees.
The court found the settlement fair and reasonable and approved it. Judge Robert W. Lehrburger directed the Clerk of Court to close the case.
The detailed version
- Guzman v. RCI PLBG, INC. · No. 1:20-cv-09513
- Robert Lehrburger
- Mar. 28, 2022
Background
Jose Enrique Guzman brought this action individually and on behalf of all others similarly situated. The case sought money damages under the Fair Labor Standards Act of 1938 (FLSA) and the New York Labor Law (NYLL). The defendants included RCI PLBG, INC. and other defendants.
The parties jointly asked the court to approve their fully executed settlement agreement, which they submitted on March 25, 2022. The court had assisted in mediating the case.
Settlement Review
Under Second Circuit law, a federal court must determine whether an FLSA settlement is fair and reasonable and resulted from arm’s-length negotiations rather than employer overreaching. The court reviewed the settlement agreement and the parties’ letter addressing its fairness.
The court noted that the release was limited to FLSA and NYLL claims, the nondisparagement provision was mutual and included appropriate exceptions, and the attorney’s fees were reasonable. The court also considered the prior proceedings, the risks, burdens, and costs of continuing the action, the possible range of recovery, whether experienced counsel or the parties negotiated at arm’s length, and the possibility of fraud or collusion.
Ruling
The court found the settlement agreement fair and reasonable and approved it. Judge Robert W. Lehrburger directed the Clerk of Court to close the case.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.