Chuqui v. Empire Wings Express Inc.

Background

Luis Chuqui brought this action under the Fair Labor Standards Act (FLSA), a federal law governing wage and overtime payments. The court was informed that Chuqui and the defendants had reached a settlement in principle. The order did not state the settlement amount or approve the agreement.

Settlement-review requirements

The court explained that an FLSA settlement connected to a dismissal under Rule 41 of the Federal Rules of Civil Procedure must be reviewed for fairness. The review includes any proposed award of attorney’s fees. The parties were ordered to submit the settlement agreement and a joint letter by July 9, 2025. The letter must explain the basis for the proposed settlement and why it is fair and reasonable if the parties intend to seek dismissal under Rule 41. It must also address any incentive payment to Chuqui and any attorney’s-fee award, including supporting documentation when appropriate.

The order stated that the parties could instead proceed through a Rule 68(a) offer of judgment, which the cited authority says does not require judicial approval for resolution of FLSA claims. The parties also could consent to proceed before the designated magistrate judge, who would then decide whether to approve the settlement. A fully executed consent form was due on July 2, 2025 if all parties chose that option.

Settlement provisions identified by the court

The court advised that it would not approve an agreement containing a confidentiality provision unless the parties showed case-specific reasons sufficient to overcome the public right of access to judicial documents. It likewise would not approve a release or waiver covering unaccrued claims or claims unrelated to wage-and-hour matters without case-specific justification. It also would not approve a clause restricting negative statements about a defendant unless the clause protected truthful statements about Chuqui’s experience litigating the case, or the parties provided case-specific justification for omitting that protection.

If the agreement contained any of those provisions, the joint letter had to state whether the parties wanted the court to consider approving the agreement with the provisions removed. The court noted that it could approve or reject the FLSA settlement but could not rewrite the agreement itself.

Disposition

Judge Jennifer H. Rearden ordered the parties to submit the settlement materials and required explanation by July 9, 2025. The order did not grant final approval, deny approval, dismiss the action, or enter judgment.