286 F. Supp. 3d 546
W.D.N.Y.2018Background
- Plaintiff Linda Snead, a former non-exempt home health aide (employed June 2007–Dec. 2013), sued under the FLSA and NYLL for unpaid minimum wages, overtime, and notice violations.
- Plaintiff alleged significant unpaid wages; counsel's review estimated $602.28 owed under the FLSA (back to Aug. 8, 2013) and $6,254.62 under the NYLL (back to Aug. 8, 2010).
- After initial discovery, the parties reached a pre-mediation settlement: total payment $20,000 to be split $6,250 wages to plaintiff, $6,250 liquidated damages to plaintiff, and $7,500 attorneys’ fees to Empire Justice Center.
- The parties jointly moved for court approval of the FLSA/NYLL settlement; the court requested supplemental counsel submissions and contemporaneous time records.
- The court held a fairness review under Cheeks and related precedent, examined settlement terms (non-disparagement, release language, no confidentiality clause), and evaluated the reasonableness of the $7,500 attorneys’ fee allocation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the FLSA/NYLL settlement is fair and reasonable and may be approved under Cheeks | Settlement provides meaningful recovery promptly, avoids litigation risk and costs; plaintiff prefers closure | Defendant disputes liability and damages but agrees to settlement to avoid further expense | Approved: court found total recovery reasonable relative to possible range, reached at arm's-length, with no indicia of fraud or collusion |
| Whether settlement contains objectionable provisions (confidentiality, overbroad release, non-disparagement) | Agreed terms include mutual non-disparagement with carve-out for truthful statements; mutual release to achieve finality | Defendant agreed to same mutual provisions | Approved: no confidentiality clause; non-disparagement acceptable (carve-out present); release broader than ideal but mutual and reasonable under facts, so approved |
| Whether attorneys’ fees allocation ($7,500; 37.5% of fund) is reasonable | Counsel documented time, experience, and risk; seeks $7,500 despite >136 hours worked (seeks credit for 37.5 hrs at $200/hr) | Defendant agreed to fee allocation as part of settlement | Approved: applying Goldberger factors, court found fees reasonable given time records, complexity, risk, quality of work, proportionate result, and public policy supporting counsel for low-income clients |
| Whether public-access and remedial-policy concerns bar approval | Plaintiff: agreement contains no broad confidentiality and includes truthful-statement carve-out | Defendant: no confidentiality either; sought mutual release and non-disparagement | Approved: court noted FLSA’s remedial purpose, approved because no overbroad confidentiality, release was mutual, and agreement advanced remedial goals |
Key Cases Cited
- Cheeks v. Freeport Pancake House, Inc., 796 F.3d 199 (2d Cir. 2015) (district court or DOL must approve FLSA settlements disposing claims with prejudice)
- Wolinsky v. Scholastic Inc., 900 F. Supp. 2d 332 (S.D.N.Y. 2012) (factors for assessing fairness of FLSA settlements and public access principles)
- Goldberger v. Integrated Res., Inc., 209 F.3d 43 (2d Cir. 2000) (six-factor test for reasonableness of attorney fee awards)
- Barfield v. N.Y.C. Health & Hosp. Corp., 537 F.3d 132 (2d Cir. 2008) (degree of success obtained is critical factor in fee awards)
- Lugosch v. Pyramid Co. of Onondaga, 435 F.3d 110 (2d Cir. 2006) (presumption of public access to judicial documents)