Tolentino v. Thai Smile Restaurant Corp.

Background

Jeronimo Tolentino sued Thai Smile Restaurant Corp. doing business as Tue Thai Food, Prasong Pornpichayanurak, and Suphakit Saeue, also known as Nick. He asserted claims for unpaid minimum and overtime wages under the Fair Labor Standards Act (FLSA) and the New York Labor Law (NYLL), as well as claims for unpaid spread-of-hours wages. The parties reached a settlement and previously asked the Court to approve it. The Court denied that request without prejudice, allowing the parties to submit a revised request.

Revised Settlement

Under the revised settlement, the defendants agreed to pay $15,000. Tolentino would receive $10,000, and his counsel would receive $5,000. Tolentino submitted a damages chart estimating $180,420 in unpaid wages and overtime, $19,176 for spread-of-hours claims, equivalent liquidated damages for both categories, $59,366.66 in prejudgment interest, and $71,450 in statutory damages for wage-statement and wage-notice claims. His estimated best-case recovery was $530,008.66, making the settlement approximately 1.9 percent of that amount.

The parties stated that the litigation was heavily contested. According to their submission, the defendants produced many records disputing Tolentino’s claimed hours and wages and showing that he signed receipts for actual wages and statutory federal and state employment forms. The parties also stated that the defendants had limited financial resources, making it difficult for Tolentino to collect a large judgment in full.

Court’s Analysis

The Court explained that FLSA wage claims generally require approval by the Department of Labor or a district court before the parties can settle them. For court approval, the parties must show that the agreement is fair and reasonable. The Court considered the settlement’s small percentage of Tolentino’s possible recovery but found that the other relevant circumstances supported approval: the agreement resulted from arm’s-length negotiations between experienced counsel, there was no fraud or collusion, discovery had concluded, Tolentino faced significant obstacles in proving his damages at trial, and there were serious concerns about collecting a judgment.

The Court also found that the release was appropriately limited. It covered wage-and-hour and record-keeping claims arising through execution of the agreement, particularly the claims under the FLSA, NYLL, and the New York Department of Labor’s Hospitality Wage Order. It released only the named defendants and did not extend to unrelated entities or prospective discrimination claims. The Court further found that the attorney’s fees and costs were fair and reasonable for the reasons stated in its earlier order.

Disposition

Judge Analisa Torres granted the parties’ renewed motion for settlement approval and approved the revised settlement. The Clerk of Court was directed to terminate pending motions, vacate all conferences, and close the case. The opinion approved the settlement; it did not decide the underlying wage claims after trial.