Rondon v. EGM Electric NYC, LLC

Background

The court was advised that the parties had reached a settlement in this Fair Labor Standards Act (FLSA) action. The opinion does not provide the settlement amount, the settlement’s other terms, or the underlying facts of the wage dispute.

Court’s directives

The court ordered that the action would not be dismissed with prejudice unless the settlement agreement was approved either by the court or by the Department of Labor. If the parties sought dismissal with prejudice, they had to file a joint letter motion asking the court to approve the settlement or provide documentation of Department of Labor approval. The filing and settlement agreement had to be placed on the public docket by June 14, 2022.

The court required the approval request to explain why the proposed settlement was fair and reasonable. It specifically required discussion of 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. The filing also had to address whether a genuine dispute existed about the hours worked or compensation owed and how much the plaintiffs’ attorney would seek in fees.

Any attorney-fee request had to include contemporaneous billing records showing, for each attorney, the date, hours worked, and nature of the work. The court further stated that, absent special circumstances, it would not approve a settlement filed under seal or in redacted form. Absent compelling circumstances, it also would not approve sweeping nondisclosure provisions or broad releases of claims unrelated to FLSA issues.

Disposition

Judge Analisa Torres stated that all pending motions were moot and vacated all conferences. The order did not approve the settlement or enter dismissal with prejudice. It established the steps needed for the parties to seek approval and dismissal.