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Picorelli v. Watermark Contractors Inc.

Denial of FLSA Wage Suit's $30,000 Settlement's Approval as 'Fair', 'Reasonable' Explained

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ORDER & OPINION Jason Picorelli (“Plaintiff”) brought this Action against his former employer, Watermark Contractors Inc. (“Watermark”); Kevin Maher (“Maher”), Watermark’s chief executive officer, founder, principal, director, and owner; and Hugh Harris (“Harris”), a Watermark principal, director, and owner (collectively, “Defendants”), pursuant to the Fair Labor Standards Act of 1938 (“FLSA”), 29 U.S.C. §§207 and 216(b), the New York Labor Law (“NYLL”) §§195 and 663, and 12 New York Codes, Rules and Regulations (“NYCRR”) §142-2.2. (See Compl. (Dkt. No. 1).) The Parties now seek approval of their Proposed Settlement Agreement (“PSA”). (See Letter from Brett R. Gallaway, Esq., to Court (May 24, 2021) (“May Gallaway Letter”) (Dkt. No. 19); Gallaway Letter Ex. A (“Proposed Settlement Agreement” or “PSA”) (Dkt. No. 19-1); Letter from Brett R. Gallaway, Esq., to Court (Nov. 2, 2021) (“Nov. Gallaway Letter”) (Dkt. No. 23); Nov. Gallaway Letter Ex. 1 (“Billing Statement”) (Dkt. No. 23-1)); Letter from Jason S. Giaimo to Court (Feb 23, 2022) (“Giaimo Letter”) (Dkt. No. 24).) For the reasons that follow, the Parties’ application is denied without prejudice. I. Background A. Factual Background Plaintiff performed construction work for Watermark, a construction and construction management business, from “approximately 2008 through the summer of 2020.” (Compl.

10-11, 18.) Plaintiff typically worked six days a week, from 7:00 a.m. to 6:00 p.m. (Id. 12.) Plaintiff alleges that he was paid $40.00 per hour — his regular rate of pay — for all hours worked, even though he regularly worked over 40 hours a week, for which time he should have been paid overtime compensation, “in the amount equal to one[-]and[-]one[-]half times” his regular rate of pay. (Id.

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