Snead v. Interim Healthcare of Rochester, Inc.

286 F. Supp. 3d 546
CourtDistrict Court, W.D. New York
DecidedFebruary 26, 2018
Docket6:16–CV–06550 EAW
StatusPublished
Cited by7 cases

This text of 286 F. Supp. 3d 546 (Snead v. Interim Healthcare of Rochester, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Snead v. Interim Healthcare of Rochester, Inc., 286 F. Supp. 3d 546 (W.D.N.Y. 2018).

Opinion

ELIZABETH A. WOLFORD, United States District Judge

INTRODUCTION

On August 8, 2016, Plaintiff Linda Snead ("Plaintiff") commenced this action pursuant to the Fair Labor Standards Act, 29 U.S.C. §§ 201 - 219 ("FLSA"), and the New York Labor Law, N.Y. Labor Law §§ 190, et seq. , N.Y. Labor Law §§ 650, et seq. ("NYLL"), and the corresponding state regulations. (Dkt. 1). Plaintiff alleges causes of action for unpaid wages and overtime payments, as well as for the failure to comply with minimum wage requirements and pay notice standards. (Id. at 8-11). On February 3, 2017, Defendant answered the complaint, denying the material allegations stated therein and raising various affirmative defenses. (Dkt. 13). However, on August 21, 2017, a Mediation Certification was filed indicating that the case had settled. (Dkt. 27).

Presently before the Court is the parties' Joint Motion for Settlement Approval. (Dkt. 32). The parties have attached the proposed settlement instrument as an exhibit to their motion (the "Agreement"). (Dkt. 32-2). Pursuant to Cheeks v. Freeport Pancake House, Inc., 796 F.3d 199 (2d Cir. 2015), either the district court or the United States Department of Labor must approve the settlement of an employee's claims against their employer, where the settlement would dispose of those claims with prejudice. Id. at 206. On January 29, 2018, the Court held a motion hearing to address the parties' joint application. The Court reserved decision and requested that Plaintiff's counsel provide a supplemental submission detailing the nature of the work performed, counsel's experience level, and contemporaneous time records, if they were available. On February 5, 2018, Plaintiff's counsel submitted an affidavit describing the work performed in this case (Dkt. 35), and attached contemporaneous time records noting the date and nature of the work performed as well as the person who undertook each recorded task (Dkt. 35-1). The parties ask this Court to find the Agreement to be fair and reasonable, and that the proposed attorney's fees incorporated therein are reasonable. (Dkt. 32-1). For the following reasons, the parties' motion is granted.

BACKGROUND 1

Plaintiff worked for Defendant, as a non-exempt home health aide, from June 2007 through December 2013. (Dkt. 32-1 at 2). Plaintiff allegedly worked anywhere between 40 and 80 hours a week, but was paid below minimum wage and at improper pay rates, and was not paid for overtime *550hours. (Id. ). After Defendant answered the complaint, this action proceeded through the initial stages of discovery. Upon the review of Plaintiff's own records and of Defendant's records obtained through discovery, Plaintiff's counsel concluded that Defendant owed Plaintiff $602.28 in unpaid wages ranging back to August 8, 2013, under the FLSA, and $6,254.62 for unpaid wages ranging back to August 8, 2010, under the NYLL. (Id. ). Defendant denies liability and disputes Plaintiff's computation of damages. (Id. ).

Beginning in 2017, the parties' respective counsel engaged in settlement negotiations. (Id. at 3). On August 21, 2017, a mediation certification was filed indicating that the parties had reached a settlement prior to the scheduling of the first mediation session. (Dkt. 27). The Agreement provides Plaintiff with a total settlement amount of $20,000.00. (Dkt. 32-1 at 3). Plaintiff favors this settlement in lieu of continuing with a course of litigation and its attendant costs, and of risking "an uncollectable judgment." (Id. ; see id. at 4 ("[Plaintiff] is a low-income worker who is interested in moving on from time-consuming[ ] litigation with [Defendant]."). Defendant also favors this settlement, at least in part, due to the costs of continued litigation. (Id. at 4).

The parties have agreed that the $20,000.00 will be paid in three checks. The first check will be for "wages payable to [Plaintiff]," in the amount of $6,250.00. (Id. at 3). The second check will be for "liquidated damages payable to [Plaintiff]," in the amount of $6,250.00. (Id. ). The third check will be for "attorneys' fees payable to the Empire Justice Center," in the amount of $7,500.00. (Id. ).

DISCUSSION

I. Legal Principles

"Parties cannot privately settle FLSA claims with prejudice absent the approval of the district court or the Department of Labor." Lazaro-Garcia v. Sengupta Food Servs., No. 15-CV-4259 (RA), 2015 WL 9162701, at *1 (S.D.N.Y. Dec. 15, 2015) (citing Cheeks v. Freeport Pancake House, Inc., 796 F.3d 199, 206 (2d Cir. 2015) ("Rule 41(a)(1)(A)(ii) stipulated dismissals settling FLSA claims with prejudice require the approval of the district court or the [Department of Labor] to take effect.") ). "To approve a settlement, this Court must be satisfied that the agreement is 'fair and reasonable.' " Velasquez v. SAFI-G, Inc., 137 F.Supp.3d 582, 584 (S.D.N.Y. 2015).

In determining whether the proposed settlement is fair and reasonable, a court should consider the totality of circumstances, including but not limited to the following factors: (1) the plaintiff's range of possible recovery; (2) the extent to which "the settlement will enable the parties to avoid anticipated burdens and expenses in establishing their respective claims and defenses"; (3) the seriousness of the litigation risks faced by the parties; (4) whether "the settlement agreement is the product of arm's-length bargaining between experienced counsel"; and (5) the possibility of fraud or collusion.

Wolinsky v. Scholastic Inc., 900 F.Supp.2d 332, 335 (S.D.N.Y. 2012). Other factors may weigh against settlement approval, such as:

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Bluebook (online)
286 F. Supp. 3d 546, Counsel Stack Legal Research, https://law.counselstack.com/opinion/snead-v-interim-healthcare-of-rochester-inc-nywd-2018.