Rodriguez Pastor v. Harlem 421 Food Corp.

Background

The court stated that the parties had reached a settlement in a case brought by Olga Rodriguez Pastor against Harlem 421 Food Corp., doing business as Keyfood Supermarket, and Roberto Espinal. The settlement included claims under the Fair Labor Standards Act (FLSA), a federal law governing wages and working conditions.

Court’s directions

The court explained that the parties could proceed in one of three ways:

1. Court approval for dismissal with prejudice. The parties could ask the court to approve a settlement and dismiss the FLSA claims with prejudice, meaning the claims would be finally dismissed. The order said that, under Second Circuit precedent, the parties could not use the ordinary voluntary-dismissal procedure to dismiss settled FLSA claims with prejudice. They instead had to seek approval under Federal Rule of Civil Procedure 41(a)(2). If the parties did not consent to have all further proceedings handled by the assigned magistrate judge, they had to submit a joint motion by April 20, 2022 explaining why the settlement was fair, attaching the settlement agreement, and addressing the factors identified by the court. The court also stated that it would not approve settlement agreements containing confidentiality provisions and would require a specific justification before allowing settlement-related documents to be filed under seal.

If the settlement included attorney’s fees, the parties also had to address whether those fees were reasonable and attach detailed attorney time records.

2. Dismissal without prejudice. The parties could submit a voluntary dismissal of the FLSA claims without prejudice, meaning the claims would not be finally barred, if they certified that there had been no settlement of those claims. The order required the parties to submit the dismissal and certification by April 13, 2022. If they could not make that certification, the order directed them to seek court review of the settlement instead.

3. Offer of judgment. The parties could resolve the case through an offer and acceptance of judgment under Federal Rule of Civil Procedure 68. The order stated that court approval was not required for such an offer involving FLSA claims. Any executed offer and acceptance, along with a proposed judgment, had to be submitted by April 13, 2022.

Disposition

The court did not decide the merits of the wage claims or approve the settlement. Instead, Judge Gregory H. Woods directed the parties to use one of the stated procedures for resolving the FLSA claims and completing the case.