Reyes v. JSD Construction Group

Background

The parties filed a joint motion seeking approval of a fully executed settlement agreement under the court’s review requirement for wage-and-hour settlements. The agreement settled Leidy Reyes’s claims under the Fair Labor Standards Act (FLSA) and the New York Labor Law (NYLL). According to the parties, Reyes’s primary contention was that the defendants failed to pay her fully for 409 hours of work. The settlement was reached in an early mediation before formal discovery, with the assistance of experienced labor and employment counsel.

Settlement Terms

The defendants collectively agreed to pay $26,000, including attorneys’ fees and litigation costs. Reyes would receive $13,000. Her counsel would receive $12,200.74 in fees and $799.26 in costs. The court noted that the fee award equaled 50% of the gross settlement and 48% of the settlement after costs. Although the proposed fee was higher than the usual fee in the district, it was below counsel’s lodestar—the amount calculated from recorded time multiplied by hourly rates—which was $16,278.50. The court found the fee was not excessive.

The agreement released defendants from claims related to overtime, minimum wage, other wage claims under the FLSA or NYLL, and related common-law claims. The court noted that the release was unilateral rather than mutual, but limited to wage-and-hour claims. The agreement had no rehiring prohibition, confidentiality clause, or restriction on Reyes’s ability to discuss her employment, the lawsuit, or the settlement. The defendants agreed to provide neutral references for Reyes.

Court’s Ruling

The court found the financial and nonfinancial terms fair and reasonable. Judge Barbara Moses granted the parties’ joint motion and approved the proposed settlement. The court ordered that the action be dismissed with prejudice and without costs, and directed the Clerk of Court to close the case.