Dellamedaglia v. Zemak LLC
- Vernon Broderick
- 1:20-cv-06753
- U.S. District Court · Southern District of New York
- 3
In Dellamedaglia v. Zemak LLC, Judge Broderick ordered judgment under the parties’ Rule 68 offer and acceptance in an FLSA case.
The parties to the FLSA case—Joseph Dellamedaglia, Zemak LLC, and the other named defendants—were affected by the entry of judgment under their Rule 68 offer and acceptance.
What happened
Joseph Dellamedaglia and Zemak LLC, along with other defendants, reported that they had settled after mediation. The court then discontinued the case, allowing it to be restored within 30 days, and the parties later filed a formal offer and acceptance of judgment under Federal Rule of Civil Procedure 68.
The court explained that the Second Circuit generally requires court or Department of Labor approval for Fair Labor Standards Act settlements, but had ruled that approval is not required for Rule 68 offers of judgment resolving those claims. Judge Broderick said the parties’ sequence of actions appeared inconsistent with the purpose of protecting workers from unfair settlements, but found that the Second Circuit’s ruling required entry of judgment.
Judge Vernon S. Broderick ordered that judgment be entered according to the parties’ previously filed Rule 68 offer and acceptance. The opinion did not decide the underlying Fair Labor Standards Act claims on their merits.
The detailed version
- Dellamedaglia v. Zemak LLC · No. 1:20-cv-06753
- Vernon Broderick
- Jan. 25, 2021
Background
The plaintiff and defendants filed materials dated January 12, 2021, reflecting an offer and acceptance of judgment under Federal Rule of Civil Procedure 68. The parties had first reported a settlement on January 4, 2021, after participating in mediation on December 22, 2020. The court then discontinued the case without costs to any party and without prejudice to restoring it to the court’s docket if an application to restore was made within 30 days. The parties filed their Rule 68 materials several days after reporting the settlement.
Legal framework
The Fair Labor Standards Act (FLSA) is a federal law governing workers’ wages and related protections. In Cheeks v. Freeport Pancake House, Inc., the Second Circuit held that FLSA settlements generally require approval by the district court or the Department of Labor. Later, in Mei Xing Yu v. Hasaki Rest., Inc., the Second Circuit held that judicial approval is not required for Rule 68(a) offers of judgment settling FLSA claims. Rule 68(a) permits a defending party to offer judgment on specified terms, and permits the opposing party to accept by written notice within the rule’s stated period.
Court’s analysis
Judge Broderick stated that the parties’ actions conflicted with the purpose of Cheeks, which is intended to prevent abuse by employers and address unequal bargaining power between employers and employees. He expressed concern that the procedure could encourage parties to avoid the review contemplated by Cheeks by reaching a settlement first and then filing a Rule 68 offer and acceptance. He nevertheless concluded that the Second Circuit’s unqualified language in Mei Xing Yu required him to enter judgment.
Disposition
The court ordered that judgment be entered in accordance with the parties’ previously filed Rule 68 offer and acceptance of judgment. The opinion did not decide the underlying FLSA claims on their merits.
Read the full 3-page opinion on CourtListener, the free public archive maintained by the Free Law Project.