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Chavez v. The Fifth Labor, LLC

S.D.N.Y.May 25, 2023No. 1:22-cv-07781
SettlementThe Fifth Labor, LLC$16,670 awarded
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Case Details

Nature of Suit — the legal category of the dispute
Labor: Fair Standards
Status — whether other courts must follow this ruling
Unknown
Procedural Posture — the stage the case had reached
consent decree

Related Laws

No specific laws identified for this ruling.

Claim Types

Wage Theft

Outcome

The court approved a settlement agreement whereby plaintiff Juanita Paulina Chavez received $25,000 (inclusive of $8,330 in attorneys' fees, leaving her $16,670) to resolve her Fair Labor Standards Act and New York Labor Law wage and hour claims against The Fifth Labor, LLC and Anthony Rhodes. The settlement represents approximately 43% of plaintiff's estimated maximum recovery of $38,635.

What This Ruling Means

Chavez v. The Fifth Labor, LLC: Settlement Summary

What Happened
Juanita Paulina Chavez sued The Fifth Labor, LLC and its owner Anthony Rhodes, claiming they failed to pay her wages properly in violation of federal and New York labor laws. She alleged wage theft—meaning the company didn't pay her all the money she earned.

What the Court Decided
The case was settled out of court. The company agreed to pay $25,000 to resolve the dispute. After attorneys' fees were paid, Chavez received $16,670 in compensation. While this settlement covered only about 43% of what she could have won if the case went to trial (approximately $38,635), it provided her with immediate payment.

Why This Matters for Workers
This case shows that workers can take legal action when employers shortchange them on pay. Even when settlements don't recover the full amount owed, they still hold employers accountable and provide compensation. If you believe your employer hasn't paid you properly, you have legal protections under federal and state law.

This summary was generated to explain the ruling in plain English and is not legal advice.

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This ruling information is sourced from public court records via CourtListener.com. Case outcomes, claim types, and summaries are extracted using AI analysis and may be incomplete or inaccurate. It is provided for informational and educational purposes only and does not constitute legal advice.

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