Hernandez Rojas v. Midtown Food Corp.

Background

The court stated that it had been notified that the parties reached a settlement in this Fair Labor Standards Act case. The opinion does not state the settlement amount or the terms of the agreement.

Court’s Instructions

The court advised that the parties may not dismiss the action with prejudice based on the settlement unless the settlement agreement is approved by either the court or the Department of Labor. The parties must file any letter motion and the settlement agreement on the public docket within 30 days of the order, and the order specifically directs them to file a letter or stipulation by August 1, 2021.

The filing must explain why the proposed settlement is fair and reasonable. It must address the plaintiffs’ possible recovery, the burdens and expenses the settlement would avoid, the litigation risks, whether experienced counsel negotiated at arm’s length, and the possibility of fraud or collusion. It must also address whether a genuine dispute exists about the number of hours worked or the compensation owed, and how much the plaintiffs’ attorney will seek in fees. The court stated that, absent special circumstances, it will not approve a settlement filed under seal or in redacted form.

Disposition

Judge Oetken did not approve or reject the settlement. He ordered the parties to submit the required filing and postponed all other filing deadlines, conference dates, and the trial date without setting new dates.