Kameoka v. Tokyo Restaurants Factory, Inc.

Background

Masateru Kameoka and Namiko Yamada brought an action for damages under the Fair Labor Standards Act (FLSA), a federal wage-and-hour law, and the New York Labor Law (NYLL) against Tokyo Restaurants Factory, Inc., and other defendants. The parties jointly asked the court to approve their settlement of the FLSA claims. They separately filed a confidential settlement agreement concerning the NYLL claim. The agreements followed two days of court-annexed mediation with a neutral third party.

Court’s Review

The court explained that it had to determine whether the FLSA settlement was fair and reasonable and resulted from arm’s-length negotiations rather than employer overreaching. The court reviewed the FLSA Settlement Agreement, the separate NYLL agreement, and the parties’ letter. It considered the prior proceedings, the risks 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 settlement had no confidentiality restrictions or non-disparagement provisions, released only wage-and-hour claims, and provided attorney’s fees within a fair and reasonable range.

Ruling

The court found the settlement fair and reasonable and approved it. Because the case was resolved by settlement, the court 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.