Gell v. El Marinero Restaurant Inc.

Background

The parties informed the court that they had reached a settlement in this Fair Labor Standards Act (FLSA) case. Under the court's procedure, the parties could not privately settle the FLSA claims without approval from the district court or the Department of Labor. The court therefore required information to evaluate whether the proposed settlement was fair and reasonable.

Required submissions

The court ordered the parties to provide the settlement terms within 30 days. They must also submit a joint letter of no more than five pages explaining why the settlement is a fair and reasonable compromise of disputed issues. The explanation should address the plaintiff's possible recovery, the burdens and expenses the settlement may avoid, the litigation risks, whether experienced counsel negotiated at arm's length, and the possibility of fraud or collusion.

If the agreement includes attorney's fees, the parties must provide evidence supporting the fee award, including contemporaneous billing records showing each attorney's date of work, hours spent, and work performed. If the agreement includes a release, confidentiality provision, or non-disparagement provision, the parties must provide support for each provision, including relevant case citations.

Ruling and next step

The court did not approve or reject the settlement in this order. Instead, Judge Jessica G. L. Clarke ordered the parties to provide the required materials so the court can review whether the settlement complies with the FLSA. The court also reminded the parties that they may consent to a magistrate judge's jurisdiction for settlement review and approval if all parties agree, and stated that withholding consent carries no adverse consequences.