Molina v. 411 rest. Corp.

Background

The court stated that it had been advised that the parties had reached a settlement in the case, which included claims under the Fair Labor Standards Act (FLSA). The order does not identify the settlement amount or describe its other terms.

Available procedures

The court directed the parties to proceed under one of three alternatives:

1. Court approval for dismissal with prejudice. Under Second Circuit precedent, the parties may not dismiss FLSA claims with prejudice through the ordinary unilateral or stipulated dismissal procedure in Federal Rule of Civil Procedure 41(a)(1)(A). They must instead seek court approval under Rule 41(a)(2). The parties first had to discuss whether they would consent to having all further proceedings conducted by the assigned magistrate judge. If they did not both consent, they had to file a joint letter by August 29, 2025, without identifying the party or parties withholding consent. If they did not consent, they had to submit by September 5, 2025, a joint motion explaining why the settlement was fair and should be approved, addressing the factors identified in Wolinsky v. Scholastic Inc., and attaching the settlement agreement. The court also stated that it would not approve settlement agreements containing confidentiality provisions and would not allow settlement-related filings to be sealed without a particularized showing overcoming the presumption of public access. If the settlement included attorney’s fees, the parties were instructed to address the fees’ reasonableness and attach detailed attorney time records.

2. Dismissal without prejudice. The court said it would accept a stipulation dismissing the FLSA claims without prejudice under Rule 41(a)(1)(A) only if the stipulation dismissed the FLSA claims without prejudice and the parties certified that there had been no settlement of FLSA claims. If the parties could not make that certification, they had to request court review of the settlement under the first alternative. The deadline for submitting the stipulation and certification was August 29, 2025.

3. Offer of judgment. The parties could resolve the case through an offer and acceptance of judgment under Federal Rule of Civil Procedure 68(a). The court stated that judicial approval is not required for a Rule 68(a) offer of judgment in an action raising FLSA claims. Any executed offer and acceptance, together with a proposed judgment order, had to be submitted by August 29, 2025.

Disposition

The order directed the parties to follow one of these procedures and set the stated deadlines. It did not grant or deny a motion, approve the settlement, enter judgment, or dismiss the case. The order was signed by Judge Gregory H. Woods on August 15, 2025.