Federal Court Approves $850,000 Settlement in Rue v. VMD Systems Integrators, Inc.
The United States District Court for the Western District of New York granted final approval to an $850,000 class action settlement in Rue v. VMD Systems Integrators, Inc., a lawsuit alleging violations of the New York Labor Law involving the weekly payment of privately employed airport security screeners. As part of its Final Approval Order, the Court appointed Orin Kurtz of the Law Office of Orin Kurtz, P.C. and Harvey Sanders of Sanders & Sanders as Class Counsel for the settlement class.
The settlement resolved claims brought on behalf of security screeners employed by VMD Systems Integrators in New York between May 16, 2018, and July 2, 2025. The lawsuit alleged that VMD paid manual workers on a semi-monthly schedule rather than the weekly schedule required by New York Labor Law § 191(1)(a), made unlawful deductions in violation of NYLL § 193, and failed to provide compliant wage statements under NYLL § 195(3). VMD denied the allegations, and the settlement resolved disputed claims without any admission of liability.
The Claims
The complaint alleged that VMD employed hundreds of airport security screeners whose work primarily consisted of physical duties such as screening passengers, conducting pat-downs, searching baggage, lifting luggage, operating screening equipment, and assisting travelers through airport security checkpoints. Based on those allegations, Plaintiffs contended that the employees qualified as ‘manual workers’ entitled to weekly pay under New York law.
The complaint further alleged that VMD maintained a company-wide semi-monthly payroll policy for years before transitioning to weekly payroll in July 2023. Plaintiffs also alleged that employees received noncompliant wage statements and challenged several payroll deductions.
The Litigation
The case proceeded through substantial discovery. VMD produced nearly 14,000 pages of documents, followed by weeks of negotiations and an approximately eight-hour mediation before mediator Krista Gottlieb. After preliminary approval, notice was mailed to 491 class members. More than 98% successfully received notice, only one class member opted out, no objections were filed, and 221 valid claim forms were submitted.
Why the Settlement Was Significant
The litigation coincided with major changes to New York’s frequency-of-pay law. When the case was filed, Plaintiffs estimated that the principal NYLL § 191 claim carried potential class-wide damages in the eight figures. During the litigation, however, the Legislature amended NYLL § 198, substantially reducing the damages available for untimely wage-payment claims. Plaintiffs estimated that the amendment reduced the value of the principal claim to approximately $138,000. Despite that significant change in the law and the litigation risks associated with the remaining claims, the parties negotiated an $850,000 settlement, which Plaintiffs estimated represented approximately 36.6% of the maximum recoverable damages after the statutory amendment. Before final approval, Class Counsel told Law360 that the agreement represented ‘a good settlement given the substantial reduction in permissible damages brought on by recent legislative changes.’
Final Approval
The Court concluded that the settlement was fair, reasonable, and adequate. It approved the settlement fund, attorneys’ fees and litigation expenses, service awards, claims administration costs, and the distribution process. The Court also formally appointed Orin Kurtz and Harvey Sanders as Class Counsel.
Talk to a New York Employment Class Action Lawyer
If your employer failed to pay wages on time, denied overtime, made unlawful deductions, or issued inaccurate wage statements, you may have rights under the New York Labor Law. Contact Orin Kurtz today to discuss your situation and whether an individual or class action may be appropriate.