Reyes v. Finkelstein Timberger East Real Estate LLC

Background

The court was informed that the parties had reached a settlement in a case involving claims under the Fair Labor Standards Act (FLSA), a federal wage-and-hour statute. The order did not describe the settlement’s terms and did not itself approve the settlement.

Settlement Options

The court directed the parties to proceed under one of three alternatives:

1. Court approval for dismissal with prejudice. Under Second Circuit precedent, the parties could not dismiss FLSA claims with prejudice through the usual voluntary-dismissal procedure. They instead had to seek court approval under Federal Rule of Civil Procedure 41(a)(2). The parties first had to discuss whether they would consent to have all further proceedings conducted by the assigned magistrate judge. If both consented, they had to file the required consent form by January 27, 2022. If either party declined, the parties had to file a joint letter by that date without identifying the party or parties that declined. If there was no consent, the parties had to submit by February 3, 2022, a joint motion explaining why the settlement was fair, addressing the factors identified in Wolinsky v. Scholastic Inc., and attaching the settlement agreement. The court stated that it would not approve settlement agreements containing confidentiality provisions and would not allow settlement-review materials to be filed under seal without a particularized showing overcoming the presumption of public access. If the settlement included attorney’s fees, the parties also had to address whether the fees were reasonable and attach detailed attorney time records.

2. Dismissal without prejudice. The court stated that it would accept a stipulation dismissing the FLSA claims without prejudice under Rule 41(a)(1)(A). The parties had to submit that stipulation by January 27, 2022, if they chose this option.

3. Offer of judgment. The parties could resolve the case through an offer and acceptance of judgment under Rule 68(a). The order explained that, under Second Circuit precedent, court approval was not required for a Rule 68 offer of judgment in an action asserting FLSA claims. The parties had to submit the executed offer and acceptance, along with a proposed order entering judgment consistent with those documents, by January 27, 2022.

Disposition and Classification

This was a procedural order establishing how the parties could present or complete their settlement. It did not decide the underlying wage claims, approve the settlement, dismiss the case, or enter judgment. Judge Gregory H. Woods ordered the parties to follow one of the listed procedures.