Aboueid v. Trattoria Pesce Pasta Restaurant Corp.

Background

Mohamed Aboueid sued Trattoria Pesce Pasta Restaurant Corp., doing business as Trattoria Casa Di Isacco, and Isaac Gutierrez under the Fair Labor Standards Act (FLSA) and New York Labor Law. He alleged that he worked as a waiter during various periods from 2017 through October 15, 2021, often working 10 hours per day, six days per week. He alleged that the defendants failed to pay the required minimum and overtime wages and failed to provide a wage notice, a W-2, and proper wage statements. He also alleged fraudulent filing of information returns.

The parties reached a settlement after two mediation sessions in April and May 2022. They asked the court to approve the agreement. Defendants disputed Aboueid’s account, asserting that he worked only sporadically and substantially fewer than 60 hours per week. They also claimed that he worked full-time at another restaurant during the period in which he alleged he was working for defendants and submitted employee affidavits supporting their account.

Court’s Analysis

Because the settlement resolved FLSA claims, the court reviewed it under the standard requiring court approval of certain FLSA settlements. The court considered the possible recovery, the burdens and expenses of continued litigation, the parties’ litigation risks, whether the agreement resulted from arm’s-length negotiations, and the possibility of fraud or collusion.

Aboueid estimated his maximum potential recovery at between $96,200 and $111,200. The proposed settlement totaled $35,000, of which Aboueid would receive $22,681.33. The court found that amount reasonable in light of the risks and disputes in the case. The agreement resulted from negotiations between experienced counsel and two mediation sessions, and the record contained no indication of fraud or collusion.

The court also found that the release was limited to claims based on Aboueid’s employment through the date the agreement was executed and did not extend beyond wage-and-hour issues. The agreement contained no confidentiality or non-disparagement provision. The court found the requested attorneys’ fees and costs reasonable: $11,666.67 in fees and $652 in costs, for a total payment to counsel of $12,318.67.

Ruling

Judge Ona T. Wang approved the parties’ proposed $35,000 settlement as fair and reasonable. Aboueid will receive $22,681.33, and his counsel will receive $12,318.67, including fees and costs. The court ordered that the action be dismissed with prejudice, directed the Clerk to terminate all open motions, and closed the case.