Gomes v. Brooklyn Bands Inc.

Background

The court was informed that the parties had reached a settlement in principle in this Fair Labor Standards Act case. The opinion explains that settlements of Fair Labor Standards Act claims, including proposed attorney’s-fee awards, must be reviewed for fairness when the parties seek dismissal under Rule 41 of the Federal Rules of Civil Procedure. The order did not decide the underlying wage-and-hour claims or approve a settlement.

Order

The court ordered the parties to submit their settlement agreement by December 1, 2025, together with a joint letter explaining the basis for the proposed settlement and why it should be approved as fair and reasonable if the parties contemplate dismissal under Rule 41. The letter must also address any incentive payment to Chitra Gomes and any attorney’s-fee award to her counsel, with supporting documentation when appropriate.

The court reminded the parties that they may instead proceed through a Rule 68(a) offer of judgment, which does not require judicial approval for resolution of Fair Labor Standards Act claims. The parties may also consent to have the designated Magistrate Judge handle the case for all purposes; if all parties consent, they were directed to file the completed consent form by November 24, 2025.

Settlement provisions identified by the court

The court stated that it would not approve a settlement containing a confidentiality provision unless the parties show case-specific reasons overcoming the common-law right of public access to judicial documents. It also identified releases or waivers of claims that had not accrued, or of claims unrelated to wage-and-hour matters, as generally unacceptable absent case-specific justification. The court likewise identified non-disparagement provisions that bar negative statements without an exception for truthful statements about the plaintiff’s experience litigating the case, absent case-specific justification.

If the agreement contains one of those provisions, the parties’ letter must state whether they want the court to consider approving the agreement with the provision removed. The court noted that it may approve or reject a Fair Labor Standards Act settlement but may not modify the agreement itself. Judge Jennifer H. Rearden therefore ordered submission of the proposed settlement for review rather than entering a final settlement approval or dismissal.