Reyes v. Richard Buses Inc.

Background

The action arose under the Fair Labor Standards Act, a federal law governing matters including employee wages and hours. The parties advised the court that they had agreed to settle the case. The court previously required them to submit a joint letter explaining the proposed settlement and addressing the factors used to evaluate whether an FLSA settlement should be approved.

Settlement Approval

After reviewing the parties’ letter and proposed settlement agreement, the court found the settlement fair and reasonable. The court considered the nature and scope of Maria Reyes’s individual claim and the risks and expenses of further litigation. The court also noted that concerns about employees being pressured into waiving FLSA claims were less significant because Reyes no longer worked for the defendant.

The court ordered that any modification of the settlement agreement must receive court approval, even if the agreement says that the parties may modify it without court approval.

Attorney’s Fees and Disposition

Reyes also requested approval of $3,333.33 in attorney’s fees and costs. The court acknowledged that the requested amount was high compared with the size of the claim and recovery, but found no reason to reduce it because there were no additional people who had joined the case, the case was not a collective action, and the fee award was based on an agreement between Reyes and her attorney. The court stated that the approved fees and costs represented one-third of the recovery. It did not express an opinion about whether counsel’s hourly rates or the number of hours worked were reasonable.

Judge Jesse M. Furman approved the settlement subject to the court-approval condition for modifications. The court dismissed the case with prejudice, meaning the case was ended and could not be brought again in that form. It found all pending motions moot, directed the clerk to terminate ECF No. 70, and ordered the case closed.