Ramirez v. QFlorist Inc.

Background

The court stated that the parties had reached a settlement in a case involving claims under the Fair Labor Standards Act (FLSA), a federal law governing certain wage and hour rights. The order addressed how the parties could dismiss the FLSA claims; it did not itself approve the settlement or enter a dismissal.

Options for dismissing the FLSA claims

The court explained that, under the Second Circuit’s decision in Cheeks v. Freeport Pancake House, Inc., the parties could not dismiss FLSA claims with prejudice—that is, permanently—through a filing under Federal Rule of Civil Procedure 41(a)(1)(A). Instead, they had to request court approval under Rule 41(a)(2).

For that option, the parties first had to discuss whether they would consent to having all further proceedings conducted by the assigned magistrate judge under 28 U.S.C. § 636(c). If both sides consented, they had two weeks from the order’s date to file the required consent and reference form. If either side declined, the parties had to file a joint letter within two weeks stating that they did not consent, without identifying the party that declined. The order stated that withholding consent would not have negative consequences.

If the parties did not consent to magistrate-judge proceedings, they had to file, within three weeks, a joint motion explaining why the settlement was fair and should be approved. The motion had to address the factors identified in Wolinsky v. Scholastic Inc. and include the settlement agreement. The court advised that it would not approve settlement agreements containing confidentiality provisions and would not allow settlement-related materials to be filed under seal unless the parties made a particularized showing overcoming the presumption of public access.

If the settlement included attorney’s fees, the parties also had to address whether the fees were reasonable under the framework identified in Goldberger v. Integrated Resources, Inc. Plaintiffs’ attorneys had to attach detailed time records for the court’s review.

The second option was a stipulation of dismissal under Rule 41(a)(1)(A) that dismissed the FLSA claims without prejudice. The court stated that it would accept such a stipulation and directed the parties to submit it within two weeks if they chose that route.

Disposition

The court directed the parties to follow one of these two procedures. It did not grant or deny a settlement-approval motion, and it did not dismiss the FLSA claims in this order. The order was signed by United States District Judge Gregory H. Woods.