Tapia v. Super Noriega, LLC

Background

The case sought damages under the Fair Labor Standards Act (FLSA), a federal wage-and-hour law, and the New York Labor Law. The court considered the plaintiffs’ unopposed request to approve a fully executed settlement agreement submitted on February 6, 2024.

Settlement Approval

Federal courts must review FLSA settlements to determine whether they are fair, reasonable, and reached through arm’s-length negotiations rather than employer overreaching. The court reviewed the settlement agreement and the plaintiffs’ letter, considering the prior proceedings, the risks, burdens, and costs of continuing the case, the possible recovery, whether the agreement resulted from arm’s-length bargaining, attorney’s fees, and the possibility of fraud or collusion.

The court noted that the agreement contained no confidentiality restrictions and that the attorney’s fees were within a fair and reasonable range. The plaintiffs released employment-related claims, while the defendants provided a full release. The agreement also included a non-disparagement clause. Although the clause did not expressly say so, the court found that it implicitly allowed the parties to discuss truthful facts. The court found the settlement fair and reasonable and approved it.

Dismissal of Absent Plaintiffs

Mario Zamudio, Jesus Ramirez, Alfonso Perez, Saul Perez, Wenceslao Martinez, and Oscar Paz Barojas were identified as the “Absent Plaintiffs.” Their attorneys withdrew on October 5, 2023. The Absent Plaintiffs then failed to appear either through counsel or without a lawyer, despite the court’s warning that their case would be dismissed for failure to prosecute under Federal Rule of Civil Procedure 41(b).

Because they still had not appeared, the court dismissed the case as to the Absent Plaintiffs for failure to prosecute under Rule 41(b). The clerk was directed to terminate all motions and deadlines and close the case.