Akberova v. Olivier Cheng Catering and Events, LLC
1:24-cv-09534
S.D.N.Y.Apr 14, 2025Background
- The parties in a Fair Labor Standards Act (FLSA) case have notified the court of a reached settlement.
- The court requires any dismissal with prejudice to be contingent on approval of the settlement by the Court or Department of Labor (DOL).
- The parties must file a letter motion on the public docket by May 13, 2025, explaining why the settlement is fair and reasonable, addressing specific factors outlined by the court.
- Any request for attorneys’ fees must be supported by detailed, contemporaneous billing records.
- The court generally will not approve settlements filed under seal/redacted or containing broad, unrelated waivers or non-disclosure provisions.
- The parties have the option to consent to have the settlement approval overseen by Magistrate Judge Sarah Netburn.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Requirement for court/DOL approval of FLSA settlement | Seeks approval of settlement | Seeks approval of settlement | Settlement not dismissed with prejudice unless approved by court or DOL |
| Standard for evaluating FLSA settlements | Settlement is fair/reasonable | Settlement is fair/reasonable | Must address fairness, bargaining, risk, fraud, range of recovery, and attorney’s fees |
| Filings under seal/redacted and broad releases | May propose confidentiality | May propose confidentiality | Court will not approve such settlements absent special/compelling circumstances |
| Attorney's fees documentation | Will provide documentation | N/A | Requests must include contemporaneous billing records |
Key Cases Cited
- Cheeks v. Freeport Pancake House, Inc., 796 F.3d 199 (2d Cir. 2015) (FLSA settlements require court or DOL approval to ensure fairness)
- Wolinsky v. Scholastic Inc., 900 F. Supp. 2d 332 (S.D.N.Y. 2012) (sets forth factors for determining reasonableness of FLSA settlements)
- Lopez v. Nights of Cabiria, LLC, 96 F. Supp. 3d 170 (S.D.N.Y. 2015) (requires contemporaneous billing records for fee applications)
