Soto v. Triumph Construction Corp.

Background

Alexander Soto filed a letter motion seeking approval of a settlement in this Fair Labor Standards Act (FLSA) case. Because the parties had not obtained approval from the U.S. Department of Labor, the court reviewed whether the settlement was fair and reasonable.

In an earlier order, the court declined to approve the original agreement because it contained an exceptionally broad release. That release would have waived essentially any claim Soto had against the defendants, including claims unrelated to wage-and-hour issues. The court directed the parties to submit a revised agreement.

Revised Settlement

The revised settlement provided for a total payment of $175,000, consisting of $115,578.11 for Soto and $59,421.89 in attorneys’ fees. The revised release covered waivable claims connected to Soto’s employment with the defendants or the termination of that employment. It specifically included claims involving retaliation, unpaid wages under the FLSA, the New York Labor Law, and any prevailing-wage contract.

The court determined that the revised release was limited to the claims at issue in the action and addressed the deficiency identified in the original agreement. The court incorporated its earlier finding that the settlement amount and attorneys’ fees were fair and reasonable.

Ruling

Judge Vernon S. Broderick found the revised settlement fair and reasonable and approved the parties’ joint submission. The Clerk of Court was directed to terminate the action.