Final Federal Court Approval Granted for $900,000 Class Action Settlement

We are pleased to announce a $900,000 class action settlement in the case of Hall v. Adelphia Three Corp., where a class of diner servers and bartenders alleged they were paid below the federal cash wage of at least $2.13 per hour. The class action lawsuit alleged that Defendants violated wage and hour laws by failing to follow certain wage regulations before taking a “tip credit,” and, as a result, they failed to pay tipped employees the proper minimum and overtime wages. In reaching this settlement, Defendants have not admitted that they violated any laws. The settlement, mediated by a retired federal judge and approved by Judge Christine P. O’Hearn, allows both sides to avoid the costs, delays, and risks of further litigation and affords relief to Plaintiff and the 384 other Settlement Class members – none of whom objected or excluded themselves from the settlement. The Court also approved $318,861 in attorneys’ fees and expenses after considering Class Counsel’s value both in context of negotiating a fair settlement, but also considering their successful motion practice, including Plaintiffs’ motion for summary judgment, motion for FLSA conditional certification, and motion for class certification of a litigated class that was granted by the Court.

The Court’s Final Approval Order may be found below.

According to Class Counsel Charles J. Kocher, Esq.: “After two years of litigation, this Court-approved settlement is an excellent resolution that brings real relief to the 385 members of the Settlement Class who were tipped employees.”