Velasquez Argueta v. Yisroel

Background

The plaintiff brought this action under the Fair Labor Standards Act, a federal law governing wages and working hours. The parties told the court that they had agreed to settle the case. The court directed them to explain why the proposed settlement should be approved under the factors discussed in Wolinsky v. Scholastic, Inc.

The plaintiff’s first motion for settlement approval was denied without prejudice because of discrepancies between that motion and the actual settlement agreement. The court also requested a declaration confirming that the plaintiff understood the allocation of costs and fees. The plaintiff then submitted a second motion for settlement approval.

Court’s Analysis

The court found that the settlement was fair and reasonable, considering the nature and scope of the plaintiff’s individual claim and the risks and expenses of further litigation. The court noted that concerns about employees being pressured to waive claims were less significant because the plaintiff no longer worked for the defendant.

The plaintiff also sought approval of $8,514 in attorney’s fees and costs. Although the amount was high compared with the size of the claim and recovery, the court found no reason to reduce it because there were no additional plaintiffs who had joined the case, the case was not a collective action, and the fee award was based on an agreement between the plaintiff and her attorney.

Disposition

The court approved the settlement subject to the condition that any modification of the agreement must receive court approval, even if the agreement purported to allow the parties to modify it without court approval. Judge Jesse M. Furman dismissed the case with prejudice, ruled that all pending motions were moot, and directed the clerk to close the case.