Pena v. El Nuevo Valle 2 Restaurant Corp.

Background

The court was advised that the parties had reached a settlement in this Fair Labor Standards Act (FLSA) case. The opinion does not describe the settlement amount or other terms, and it does not say that the court approved the settlement.

Settlement-Approval Requirements

The court explained that an FLSA action cannot be dismissed based on a settlement unless the settlement has been approved by the court or by the Department of Labor. To seek dismissal under Federal Rule of Civil Procedure 41, Marino Pena or the parties jointly had to do one of two things by July 2, 2025:

- file a letter request asking the court to approve the settlement, together with the settlement agreement, on the public docket; or - provide documentation showing that the Department of Labor approved the settlement.

Any request for court approval had to explain why the agreement was fair and reasonable. The court required discussion of Pena’s possible recovery, the burdens and expenses the parties would avoid by settling, the seriousness of the litigation risks, whether experienced counsel negotiated at arm’s length, and the possibility of fraud or collusion. The request also had to address whether the parties genuinely disputed the number of hours worked or the compensation owed, as well as the amount of attorney fees sought.

Terms the Court Said It Generally Would Not Approve

The court advised that, absent special circumstances, it would not approve a settlement filed under seal or in redacted form. It also stated that, absent compelling circumstances, it would not approve sweeping nondisclosure provisions or releases covering claims unrelated to FLSA issues. In particular, the court identified broad releases covering entities beyond the defendants, the plaintiff’s successors or representatives, or wage claims beyond those involved in this case as provisions it generally would not approve absent extraordinary circumstances.

Attorney Fees and Further Proceedings

Any request for attorney fees had to include supporting documentation, including contemporaneous billing records identifying, for each attorney, the date, hours worked, and nature of the work.

The parties could voluntarily consent to proceed before Magistrate Judge Valerie Figueredo, who would then oversee settlement approval. The court stated that withholding consent would not carry negative consequences. If the parties consented and the court approved the consent form, further proceedings would occur before Judge Figueredo, and any appeal would go directly to the United States Court of Appeals for the Second Circuit.

Disposition

Judge Analisa Torres did not approve or reject the settlement in this order. She directed the plaintiff or the parties to submit the required approval materials or Department of Labor documentation if they sought dismissal. The court declared pending motions moot, suspended all deadlines other than those in the order, and vacated all conferences.

Classification Basis

This is a procedural order because it addressed the requirements for approving and dismissing an FLSA settlement rather than deciding the underlying wage claims.