Deng v. Sun Wei Chung Inc.

Background

The court was notified that Ju An Deng and Sun Wei Chung Inc. had reached a settlement in a case under the Fair Labor Standards Act, a federal law governing matters such as minimum wages and overtime. The order did not describe the underlying claims or decide whether either side was legally right.

Settlement-Approval Requirements

The court advised that the parties could not dismiss the action with prejudice based on their settlement unless the agreement was approved by either the court or the Department of Labor. The parties were directed to file a letter or stipulation, together with the settlement agreement, on the public docket within thirty days and no later than November 5, 2025.

The filing must explain why the proposed settlement is fair and reasonable. The court identified these required considerations: the plaintiff’s possible recovery; the burdens and expenses the settlement would avoid; the seriousness of the litigation risks; whether the agreement resulted from arm’s-length bargaining between experienced counsel; and the possibility of fraud or collusion. The filing must also address whether there is a genuine dispute about the hours worked or compensation owed and how much of the settlement the plaintiff’s attorney will seek as fees.

Other Directions and Disposition

The court stated that, absent special circumstances, it would not approve a settlement filed under seal or in redacted form. It postponed all other filing deadlines, conference dates, and the trial date without setting new dates. This was a procedural order directing the parties to follow the settlement-review process; it did not approve the settlement or resolve the wage claims.