A CHEEKS HEARING

Having just completed one, the court did review the proposed settlement and required a modification of one of the terms.

HYSENI v. ZIA MARIA LITTLE ITALY INC., Dist. Court, SD New York 2022:

"The Final Report of the Mediator filed on January 5, 2022 indicates that the court-ordered mediation in this case was held and agreement was reached on all issues. [ECF No. 32]. Because Plaintiff's Complaint asserts claims under the Fair Labor Standards Act ("FLSA"), 29 U.S.C. § 201 et seq., judicial approval is required before settlement. See Cheeks v. Freeport Pancake House, Inc., 796 F.3d 199, 206 (2d Cir. 2015) (holding that FLSA settlements require the approval of either the district court or the United States Department of Labor). "In deciding whether to approve a stipulated settlement, the Court must scrutinize the settlement for fairness." Boucaud v. City of New York, No 07-cv-11098 (RJS), 2010 WL 4813784, at *1 (S.D.N.Y. Nov. 16, 2010).

IT IS HEREBY ORDERED that, on or before February 2, 2022, the parties shall submit a joint letter to the Court explaining why the proposed settlement reflects a "fair and `reasonable compromise of disputed issues rather than a mere waiver of statutory rights brought about by an employer's overreaching.'" Wolinsky v. Scholastic Inc., 900 F. Supp. 2d 332, 335 (S.D.N.Y. 2012) (quoting Mosquera v. Masada Auto Sales, Ltd., No. 09-cv-4925 (NGG), 2011 WL 282327, at *1 (E.D.N.Y. Jan. 25, 2011)). Specifically, the parties should address 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.

Id. (quoting Medley v. Am. Cancer Soc., No. 10 Civ. 3214, 2010 WL 3000028, at *1 (S.D.N.Y. July 23, 2010)). The letter must also address whether there is a bona fide dispute as to the number of hours worked or the amount of compensation due and how much of the proposed settlement Plaintiff's attorney shall be seeking as fees. Cheeks, 796 F.3d at 203, 206. Absent special circumstances, the Court will not approve any settlement agreement that is filed under seal or in redacted form. Id. at 206. The parties should also include a copy of the settlement agreement with their submission."