Colon v. 3530 Equities LLC

Background

Edy Colon sued 3530 Equities LLC and Hysen Mehmetaj under the Fair Labor Standards Act and New York Labor Law. He alleged that he worked as a residential superintendent at the defendants’ apartment building from February 2020 through April 2021. According to the allegations, the defendants did not provide an accurate way to report his weekly hours, paid him a fixed amount each workweek, paid less than the minimum wage, failed to pay overtime, and failed to provide complete and accurate wage notices and statements.

The parties reached a settlement through court-referred mediation and asked the court to approve it. The court reviewed the agreement under the standard requiring approval of Fair Labor Standards Act settlements.

Court’s Analysis

The court found the settlement fair and reasonable. Colon stated that his potential maximum recovery was $40,594.50, excluding liquidated damages. The proposed settlement totaled $32,500, of which Colon would receive $21,530—about 53% of his best-case recovery without liquidated damages or penalties. His counsel would receive $10,970, consisting of $10,300 in attorneys’ fees and $670 in costs.

The court concluded that the settlement would allow the parties to avoid the burdens and expense of trial. It noted significant litigation risks, including Colon’s acknowledged difficulty proving the number of hours he worked. The parties represented that they had engaged in extensive negotiations, and the record contained no evidence of fraud or collusion.

The court also found that the release was appropriately limited to employment-related claims through the date the agreement was executed. The agreement contained no confidentiality or non-disparagement provision. The court found the $10,300 attorneys’ fee award reasonable and noted that it was slightly less than one-third of the total settlement.

Disposition

Judge Ona T. Wang approved the parties’ proposed settlement agreement as fair and reasonable. The order states that Colon will receive $21,530 and his counsel will receive $10,970, including $10,300 in attorneys’ fees and $670 in costs. The court ordered that the action be dismissed with prejudice and directed the Clerk of Court to close the case.