Case: Wage & Hour/FLSA Settlement (S.D.N.Y.)

A New York federal district court denied a proposed settlement agreement of $48,000 between a former employee and Taco Mix LLC for Fair Labor Standards Act and state labor code violations alleging it failed to pay him overtime wages. Although the settlement amount and attorneys’ fees and costs were reasonable, the court found that the agreement’s release provision requiring the employee to waive all rights to any potential claims was non-mutual and too broad to enforce. The court also found the no-hire provision unenforceable because it was highly restrictive and conflicted with the remedies provided by the FLSA. Further, the ...