HENRY PITMAN, Magistrate Judge.
This matter is before me on the parties' joint application to approve the parties' settlement (Docket Item 26). All parties have consented to my exercising plenary jurisdiction pursuant to 28 U.S.C. § 636(c).
This is an action brought by an individual who was formerly employed as a deli worker/sandwich maker in defendants' restaurants and seeks unpaid overtime premium pay and spread-of-hours pay. The action is brought under the Fair Labor Standards Act ("FLSA"), 29 U.S.C. §§ 201
Plaintiff alleges that he was employed as a deli worker/sandwich maker by defendants from 2008 through August 18, 2013. Plaintiff claims that until December 2010 he worked six days per week from 7:00 a.m. until 6:00 p.m. and was paid a "straight time" wage of $8.60 per hour for all hours worked. Beginning in January 2011 through the end of his employment with defendants, plaintiff alleges that he worked six days per week from 6:00 a.m. until 4:00 p.m. and was paid a "straight time" wage of $10.00 per hour for all hours worked. In addition to his claim for unpaid overtime premium pay, plaintiff seeks damages under the Labor Law for defendants' alleged failure to pay "spread-of-hours" pay and to provide plaintiff with a written notice of plaintiff's regular hourly rate, overtime rate and other related information. Plaintiff claims his unpaid wages total approximately $11,800.00. Plaintiff claims that if he is awarded this sum as unpaid wages, he is also entitled to $9,200.00 in liquidated damages and $5,000.00 for wage notice violations. Thus, plaintiff's total claimed damages are $26,000.00, exclusive of attorney's fees and costs.
Defendants' principal dispute concerns plaintiff's claimed hourly rate. Defendants claim that plaintiff's regular hourly rate was actually less than what plaintiff claims and that if plaintiff's wages are calculated using the correct regular hourly rate, plaintiff actually did receive the appropriate overtime premium pay. Defendants further claim that plaintiff's damages calculation fail to account for meal breaks granted to plaintiff and fail to credit defendants for meals that were provided to plaintiff free of charge. Plaintiff disagrees with most aspects of defendants' contentions.
The parties have agreed to a total settlement of $32,000.00. The total settlement amount represents 123% of plaintiffs' unpaid wages, liquidated damages and statutory penalties. The parties also seek approval of an award of attarney's fees and out-of-pocket costs totaling 35% of the settlement figure, or $11,200.00. After deducting this sum for fees and costs, plaintiff will be left with $20,800.00 or 80% of his claimed unpaid wages, liquidated damages and statutory penalties.
Court approval of an FLSA settlement is appropriate
In
(Inner quotations and citations omitted) . The settlement here satisfies these criteria.
The total damages sought by plaintiff, including liquidated damages, are $26,000.00. Thus, the settlement represents approximately 123% of the total amount sought by plaintiff.
Second, the settlement will entirely avoid the burden, expense and aggravation of litigation. Plaintiff's case rests entirely on plaintiff's oral testimony, and litigating the case would require the taking of several depositions. The settlement avoids the expense and burden of these depositions.
Third, the settlement will enable plaintiff to avoid the risk of litigation. Defendants claim that plaintiff signed payroll records on a weekly basis. Although plaintiff disputes ever signing the payroll ledger and contests the authenticity of the signatures, plaintiff's counsel admits that disproving the veracity of the documents would be difficult. Defendants' records pose a significant litigation risk to plaintiff because if the jury found the records to be accurate, plaintiff's recovery could be either drastically reduced or eliminated entirely.
Finally, given the substantial size of the settlement in comparison to the amount claimed by plaintiff, I am confident that it is the product of arm's-length bargaining between experienced counsel and that no fraud or collusion affected the parties' negotiations.
As noted above, plaintiff and counsel have also agreed that plaintiff's counsel will receive 35% of the settlement proceeds as a fee. Counsel does not seek any additional fee for out-of-pocket costs; the 35% figure is inclusive of all fees and costs.
Contingency fees of one third in FLSA cases are routinely approved in this Circuit.
Accordingly, I approve the settlement in this matter. In light of the settlement, the action is dismissed with prejudice and without costs. The Clerk of the Court is requested to mark this matter closed.
SO ORDERED.