Medina v. 163 Ashley Deli Grocery

Background

The parties reported that they had settled the dispute, including claims under the Fair Labor Standards Act (FLSA). On March 23, 2020, the court ordered them to submit their settlement agreement for judicial approval and to file a joint letter explaining why the settlement was fair and reasonable under the factors identified in Wolinsky v. Scholastic Inc. The court also required any contingency-fee agreement and time and expense records needed to support an award of attorney fees and costs.

Deficiencies in the Filing

On April 6, 2020, the parties filed the settlement agreement without the required joint letter or attorney records, even though the plaintiff’s counsel sought $15,000 in attorney fees. The court directed the parties to refile the agreement with the required documents by April 22, 2020.

Confidentiality Provision

The court reminded the parties that confidentiality provisions are rarely appropriate in wage-and-hour settlements because of the policy concerns underlying the FLSA. The court specifically directed the parties to address whether it could approve the confidentiality provision in Section 6 of their agreement. The cited decisions explain that a confidentiality provision generally requires compelling justification and may be severed when permitted by the agreement.

Disposition

Judge Barbara Moses ordered the parties to refile the settlement agreement and supporting materials by April 22, 2020, and to address the confidentiality provision. The order did not approve or reject the settlement agreement.