Hassan v. Farah Foods, Inc.

Background

Aly Hassan and Ayman Elkallaf brought an action for damages under the Fair Labor Standards Act (FLSA), a federal wage-and-hour law, and the New York Labor Law. The defendants were Farah Foods, Inc., and other defendants. The parties submitted a joint request for approval of their settlement agreement, along with a fully executed copy, on May 19, 2023.

Court’s Review

Federal courts must review proposed FLSA settlements to determine whether they are fair and reasonable and resulted from arm’s-length negotiations rather than employer overreaching. The court had assisted with mediation and reviewed the settlement agreement and the parties’ letter. It considered, among other things, the prior proceedings, the risks, burdens, and costs of continuing the case, the possible recovery, the negotiation process, attorney’s fees, and the possibility of fraud or collusion.

The court noted that the settlement amount reflected the strengths and weaknesses of the case and the risks of litigation. It also found that the attorney’s fees were within a fair and reasonable range, that the agreement contained no confidentiality provisions, and that its mutual non-disparagement clause included appropriate exceptions for truthful statements.

Ruling and Disposition

Judge Robert W. Lehrburger held that the settlement agreement was fair and reasonable and approved it. The Clerk of Court was requested to terminate all motions and deadlines and close the case. The opinion does not state the settlement amount or identify how the settlement proceeds were allocated.