Vazquez v. America's Finest Deli Corp.

Background

The case was brought under the Fair Labor Standards Act, a federal law governing certain wage and hour rights. The parties reported that they had reached a settlement in principle. The court explained that, under applicable Second Circuit law, it must review the settlement—including any proposed attorney-fee award—to determine whether it is fair.

What the Court Ordered

The court ordered the parties to file a joint letter by June 26, 2023. The letter must explain the basis for the proposed settlement and why the settlement should be approved as fair and reasonable, using the factors identified in Wolinsky v. Scholastic, Inc. It must address any confidentiality provisions, non-disparagement provisions, and releases in the proposed agreement.

If the settlement included an attorney-fee award, the letter also had to address that award and provide supporting documentation when appropriate. The court stated that merely comparing the requested fee with the total settlement amount was not enough. Adequate documentation would normally include records showing, for each attorney, the date, hours worked, and nature of the work. The court warned that insufficient documentation could lead it to reject the proposed fee award.

Hearing and Disposition

The court directed the parties to appear by telephone for a settlement-approval hearing on July 17, 2023, at 11:00 a.m. The plaintiff was required to attend and, if necessary, use an interpreter. The order did not approve the proposed settlement; it required further information and a hearing before the court addressed approval. Any pending motions were dismissed as moot, and all other conferences and deadlines—including trial and pretrial deadlines—were canceled.