Gutierrez Meza v. Rainbow Cleaners of NY, Inc.

Background

The parties reported that they had reached a settlement in principle. The case was brought under the Fair Labor Standards Act, a federal law governing wages and working hours. The opinion states that, under current Second Circuit law, the court must review any settlement and any proposed attorneys’ fee award to determine whether they are fair.

Court’s Order

The court ordered the parties to submit a joint letter by August 1, 2022, explaining the basis for the proposed settlement and why it should be approved as fair and reasonable. The letter must address the fairness factors discussed in Wolinsky v. Scholastic, Inc. and any confidentiality provisions, non-disparagement provisions, or releases in the proposed agreement.

If the settlement includes an attorneys’ fee award, the letter must also address that award and provide supporting documentation when appropriate. The court stated that merely identifying the percentage of the settlement requested as fees is not enough. Adequate documentation normally includes contemporaneous time records showing, for each attorney, the date, hours spent, and work performed. The court warned that insufficient documentation could lead it to reject the proposed fee award.

The parties were directed to appear by telephone for a settlement-approval hearing on August 10, 2022, at 10:00 a.m. The opinion states that the plaintiff must appear and may use an interpreter if necessary. Any pending motions were dismissed as moot, and all other conferences and deadlines were canceled. This order did not state that the proposed settlement itself was approved.