Orr v. Tristate Note Repurchase Group LLC

Background

Jeffrey Orr brought this Fair Labor Standards Act (FLSA) case individually and on behalf of others similarly situated against Tristate Note Repurchase Group LLC, doing business as Wingate by Wyndham Fishkill. On August 10, 2023, Orr filed a settlement agreement and a statement explaining its basis, as required for court review under the Second Circuit’s decision in Cheeks v. Freeport Pancake House, Inc.

Settlement Review

The court considered several factors in reviewing the proposed settlement:

- The total settlement was $55,000. Of that amount, $35,581.22 was attributed to Orr and his bankruptcy estate, exceeding Orr’s calculation of approximately $23,143 in actual unpaid wages. - The parties had a genuine dispute about whether Orr was properly paid. The court noted that differences between pay and time records could be explained by supplemental cash payments that did not appear on the pay records. - All parties were represented by counsel. - Orr’s Chapter 7 bankruptcy trustee approved the settlement. - A neutral mediator assisted with reaching the agreement. - The parties wanted to resolve the case early and avoid the costs and uncertainty of extended litigation. - The release was limited to employment-related claims that accrued before Orr signed the settlement agreement. - The agreement contained no confidentiality or non-disparagement clause.

The court found that the agreement was fair and reasonable and resulted from arm’s-length negotiations, rather than fraud or collusion.

Attorney’s Fees

The court also found reasonable the requested attorney’s fees, which totaled one-third of the gross settlement amount, together with reimbursement of costs.

Disposition

The court approved the parties’ settlement agreement. It directed the Clerk to close the case. Judge Vincent L. Briccetti signed the order on August 14, 2023.