Klein v. Phyton Talent Advisors LLC

Background

Tzvi Klein asserted claims for religious discrimination and whistleblower retaliation under New Jersey law. He also asserted overtime claims under the Fair Labor Standards Act (FLSA), a federal wage-and-hour law, and New Jersey law. The parties reported that they participated in the Southern District of New York’s mediation program on March 9, 2022, and reached an agreement on all issues.

Requested procedure

The court had previously required the parties to seek approval if they wanted to dismiss Klein’s FLSA claims with prejudice. The parties asked to adjourn that deadline indefinitely and to receive until June 1, 2022, to submit a Rule 68 offer of judgment resolving the FLSA claims. A Rule 68 offer of judgment is a formal offer to allow judgment for specified relief. The parties stated that they intended to dismiss the remaining non-FLSA claims under a private settlement agreement after Klein accepted the offer and the court entered the resulting judgment.

Ruling

Judge Caproni granted the application. The parties were required to file the Rule 68 offer of judgment by June 1, 2022, and all previously scheduled conferences and other deadlines were canceled. The court dismissed the non-FLSA claims with prejudice and without costs, including attorney fees, to either party. The order did not state the amount or terms of the proposed FLSA offer. It provided that, if the parties wanted the court to retain jurisdiction—authority to enforce the settlement agreement—they had to file the agreement and request an order expressly retaining that authority within the same 30-day period.