Thermidor v. Alteration Group of NY, LLC

Background

The court was notified that the parties had reached a settlement in principle in this Fair Labor Standards Act case. The opinion does not describe the underlying wage claims or state the proposed settlement amount.

Court’s instructions

The court advised that the parties could not dismiss the action with prejudice based on the settlement unless the settlement agreement was approved by either the court or the Department of Labor. It required any motion asking for approval, together with the settlement agreement, to be filed on the public docket within 30 days.

The approval submission had to explain why the proposed settlement was fair and reasonable. The court directed the parties to address the plaintiff’s possible recovery; the burdens and expenses the settlement would avoid; the seriousness of the parties’ litigation risks; whether experienced counsel negotiated the agreement at arm’s length; and the possibility of fraud or collusion. The submission also had to address whether there was a genuine dispute about the number of hours worked or the compensation owed, and how much the plaintiff’s attorney would seek in fees. The court stated that, absent special circumstances, it would not approve a settlement filed under seal or in redacted form.

Disposition

The court ordered the parties to file a letter or stipulation complying with these instructions by April 5, 2020. It postponed all other filing deadlines, conference dates, and the trial date indefinitely. The order did not approve or reject the settlement and did not decide the underlying Fair Labor Standards Act claims.

Classification basis

This is a procedural order because it addressed the process for seeking approval of a proposed settlement rather than deciding the merits of the wage claims.