Court Approves a $5.4 Million Settlement for TBTA Sergeants and Lieutenants’ FLSA Overtime Claims

On May 6, 2020, the Honorable Vernon S. Broderick of the United States District Court for the Southern District of New York approved a $5.4 million settlement for overtime claims raised by a collective of 169 Sergeants and Lieutenants.  See Feliciano, et al. v. Metro. Transp. Auth., et al., No. 1:18-cv-00026 (VSB) (S.D.N.Y. May 6, 2020) (the “Order”). 

In this Collective Action, Plaintiffs alleged that they were not paid all of their wages in accordance with the Fair Labor Standards Act (“FLSA”).  More specifically, Plaintiffs claimed that because of Defendants’ time keeping policies, they were not paid for their time worked before and after their scheduled tours.  Plaintiffs also claimed that their overtime rates were artificially depressed because they did not factor in differentials, bonuses, and other lump sum payments that should be included in the overtime rate calculation.  Finally, Plaintiffs claimed that all of their overtime was paid two (2) pay periods after it was earned and that such payments are deemed unreasonably late under the FLSA’s prompt pay requirements.

After years of litigation and two full-day mediation sessions with Martin F. Scheinman, the parties agreed to resolve this Collective Action for $5.4 million.  Judge Broderick conducted an independent review of the parties’ Settlement Agreement and found that the Settlement is fair, reasonable, and adequate and that it “constitutes a sizable portion of the possible recovery in this case.”  Order at p. 3.  Faruqi & Faruqi Partner Innessa M. Huot served as Co-Lead Counsel in the matter.