Boza v. GRJ Construction Corp

Background

The court was advised that Edison Boza and GRJ Construction Corp. had reached a settlement in a case under the Fair Labor Standards Act, a federal law governing matters such as minimum wages, overtime, and related employment protections. The opinion does not state the settlement amount or the underlying allegations.

Settlement-approval requirements

The court stated that the action could not be dismissed with prejudice based on the settlement unless either the court or the Department of Labor approved the settlement agreement. If the parties wanted dismissal with prejudice, they had to file a joint letter motion asking the court to approve the agreement or provide documentation of Department of Labor approval. The filing and settlement agreement had to be placed on the public docket by June 21, 2022.

The letter motion had to explain why the proposed settlement was fair and reasonable. The court identified these minimum topics:

- the plaintiff’s possible recovery; - the burdens and expenses the settlement could avoid; - the seriousness of the litigation risks; - whether experienced counsel negotiated at arm’s length; and - the possibility of fraud or collusion.

The parties also had to address whether a genuine dispute existed about the number of hours worked or the compensation owed, and how much of the settlement the plaintiff’s attorney would seek as fees.

Attorney fees and settlement terms

Any request for attorney fees had to include supporting documentation. The court required 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. It also generally would not approve broad nondisclosure provisions or releases covering claims unrelated to Fair Labor Standards Act issues unless compelling circumstances existed.

Consent to magistrate judge

The parties could consent to proceed before Robert W. Lehrburger, who would then oversee settlement approval. If they consented, they had to file a completed consent and reference form by June 10, 2022. The order stated that the parties could withhold consent without negative consequences. Any appeal would go directly to the United States Court of Appeals for the Second Circuit.

Disposition

The court did not approve the settlement or dismiss the action in this order. It stated that pending motions were moot, vacated all conferences, directed the Clerk of Court to strike the order at docket entry 18, and reopened the case.