Anzurez v. La Unica Caridad inc.

Background

The parties advised the court that they had reached a settlement in principle in this action under the Fair Labor Standards Act (FLSA), 29 U.S.C. § 201 et seq. The opinion explains that an employer violating the FLSA’s overtime-pay requirement may owe the unpaid overtime and an equal amount as additional damages.

Court’s order

The court ordered the parties to submit the settlement agreement and a joint letter by January 11, 2021. The letter had to explain the basis for the proposed settlement and why any dismissal under Federal Rule of Civil Procedure 41 should be approved as fair and reasonable. It also had to address any incentive payment to the plaintiff and any attorney’s fee award to the plaintiff’s counsel, with supporting documentation when appropriate.

The court reminded the parties that they could consent to have the assigned magistrate judge decide whether to approve the settlement. It also stated that it would not approve an agreement containing certain provisions unless the parties provided case-specific justification: a confidentiality provision that could not overcome the public-access right to judicial documents; a release or waiver covering claims that had not accrued or claims unrelated to wage-and-hour matters; or a clause barring negative statements about a defendant without an exception for truthful statements about the plaintiff’s experience litigating the case. If such provisions appeared, the parties had to say whether they wanted the court to consider approving the agreement with those provisions stricken. The court noted that it could approve or reject the agreement but could not modify it.

Disposition

Judge Jesse M. Furman did not approve the settlement or dismiss the action in this order. Instead, the court ordered additional settlement submissions and adjourned the March 4, 2021 pretrial conference and all pending deadlines. The order is a procedural order concerning review of a proposed FLSA settlement.