Persaud v. Gucci America, Inc.

Background

Tarangini Persaud brought claims under the Fair Labor Standards Act (FLSA) on behalf of herself and others similarly situated against Gucci America, Inc. and Kering America’s, Inc. The parties filed a notice of voluntary dismissal without prejudice under Federal Rule of Civil Procedure 41(a)(1)(A). The notice stated that the dismissal was not based on a settlement; it was filed in response to the defendants’ argument that the dispute was subject to arbitration.

The Clerk of Court referred the notice to the court because the plaintiff asserted FLSA claims. The court considered whether the dismissal required judicial approval under the Second Circuit’s decision in Cheeks v. Freeport Pancake House, which held that a dismissal with prejudice of an FLSA claim under the applicable Rule 41 procedure requires approval by the district court or the Department of Labor.

Court’s Analysis

The court concluded that the notice did not require judicial approval. It explained that the Second Circuit had limited Cheeks to dismissals with prejudice. The court also stated that FLSA claims are arbitrable and that a dismissal without prejudice in favor of arbitration does not compromise the plaintiff’s claims. Because the dismissal was not a settlement, the fairness factors used to review FLSA settlements did not apply. The court noted that if the plaintiff later refiles the case and settles it in court, there will be an opportunity for the required settlement review at that time.

Disposition

Judge Lewis J. Liman concluded that the FLSA does not require approval of a dismissal without prejudice in favor of arbitration. The court directed the Clerk of Court to dismiss the case without prejudice.