Miranda v. Lexington United LLC

Background

Roberto Miranda brought an action for damages under the Fair Labor Standards Act, a federal wage-and-hour law, and the New York Labor Law against Lexington United LLC and other defendants. The parties jointly asked the court to approve a fully executed settlement agreement submitted on July 22, 2022.

Settlement Review

Because federal courts must review settlements in Fair Labor Standards Act cases, the court examined whether the agreement was fair and reasonable and resulted from arm’s-length negotiations rather than employer overreaching. The parties reached their agreement after court-ordered mediation. The court reviewed the parties’ letter and settlement agreement and considered, among other things, prior proceedings, the risks, burdens, and costs of continuing the case, the possible recovery, the bargaining process, attorney’s fees, and the possibility of fraud or collusion.

The court noted that the agreement contained no confidentiality provision, that the attorney’s fees were within a fair and reasonable range, and that the non-disparagement provision included appropriate exceptions. The court found the settlement fair and reasonable and approved it.

Disposition

The court stated that the case had been resolved by settlement and dismissed and discontinued it in its entirety, with prejudice, without costs or fees to any party except as provided in the settlement agreement. The Clerk of Court was directed to terminate all motions and deadlines and close the case.