Perez Salguero v. CM Enterprises of Rockland Inc

Background

Erodita Xiomara Perez Salguero brought this Fair Labor Standards Act case against CM Enterprises of Rockland Inc., doing business as Luigi O’Gradys Deli and Catering, and Michelle Worab. On June 2, 2022, Perez Salguero filed a settlement agreement and a statement explaining its basis, as required by the Court of Appeals’ decision in Cheeks v. Freeport Pancake House, Inc.

Settlement Review

The court considered Perez Salguero’s position that the settlement was fair and adequate; the risks and costs of continuing the litigation; her representation by counsel; the fact that she no longer worked for the defendants; the release’s limitation to wage-and-hour claims that accrued before the agreement was signed; and the mutual nature of the non-disparagement provision.

Based on those factors, the court found that the settlement was fair and reasonable and resulted from arm’s-length negotiation, without fraud or collusion. The court also found reasonable the attorneys’ fees, which were one-third of Perez Salguero’s net recovery, along with reimbursement of costs.

Ruling

Judge Vincent L. Briccetti approved the parties’ settlement agreement. The action was dismissed without prejudice to the right to restore it to the court’s calendar, but any request to restore the action had to be filed no later than August 8, 2022. The court stated that a later request could be denied solely because it was untimely. The Clerk was instructed to close the case.