Nyanwleh v. Prime Staffing LLC

Background

The parties informed the court that they had reached a settlement in this Fair Labor Standards Act (FLSA) case. The opinion does not state the settlement amount or provide other substantive terms of the agreement.

Settlement-approval requirement

The court ordered that the action not be dismissed with prejudice unless the settlement agreement was approved by the court or by the Department of Labor. If the parties sought dismissal with prejudice, they had to file either a joint letter motion asking the court to approve the settlement or documentation showing Department of Labor approval. Any letter motion and the settlement agreement had to be filed on the public docket by March 28, 2022.

The letter motion had to explain why the proposed settlement was fair and reasonable, including the range of possible recovery; the burdens and expenses the settlement would avoid; the seriousness of the litigation risks; whether experienced counsel reached the agreement through arm’s-length bargaining; and the possibility of fraud or collusion. It also had to address whether a genuine dispute existed about the number of hours worked or compensation owed and how much the plaintiff’s attorney would seek in fees.

Attorney’s fees and settlement terms

Any request for attorney’s fees had to include supporting documentation, including contemporaneous billing records showing each attorney’s date, hours worked, and work performed. The court stated that, absent special circumstances, it would not approve a settlement filed under seal or in redacted form. It also stated that, absent compelling circumstances, it would not approve sweeping nondisclosure provisions or broad releases covering claims unrelated to FLSA issues.

Disposition

Judge Analisa Torres ruled that any pending motions were moot and vacated all conferences. The opinion did not itself approve the settlement or dismiss the action with prejudice.