Simmons v. Allied Universal Security Services, LLC
- Gregory Woods
- 1:22-cv-03526
- U.S. District Court · Southern District of New York
- 4
In Simmons v. Allied Universal, Judge Woods ordered settlement parties to choose procedures for resolving Fair Labor Standards Act claims.
The plaintiff, the defendants, and their attorneys were affected because the order required them to select and follow one of three procedures for resolving the FLSA claims and set related filing deadlines.
What happened
In Simmons v. Allied Universal Security Services, LLC, the court was told that the parties had reached a settlement involving claims under the Fair Labor Standards Act. The order did not approve the settlement or enter a final dismissal.
The court directed the parties to choose among three procedures: seek court approval to dismiss the Fair Labor Standards Act claims with prejudice, submit a dismissal without prejudice while certifying that those claims were not settled, or use an offer of judgment under Rule 68. The order set filing deadlines of July 22 and July 29, 2022, depending on the chosen procedure.
Judge Gregory H. Woods also directed the parties to consider consenting to proceedings before the assigned magistrate judge and explained requirements for reviewing the settlement, including disclosure of the agreement and attorney time records if fees were included. The order did not decide the underlying claims.
The detailed version
- Simmons v. Allied Universal Security Services, LLC · No. 1:22-cv-03526
- Gregory Woods
- July 8, 2022
Background
The court stated that it had been advised that the parties had reached a settlement in the case, including claims under the Fair Labor Standards Act (FLSA). The order addressed how the parties could resolve or dismiss the FLSA claims; it did not decide the merits of those claims or approve a settlement.
Procedures Ordered by the Court
The court directed the parties to proceed through one of three alternatives:
- Court-approved dismissal with prejudice. If the parties wanted to dismiss the FLSA claims with prejudice, meaning the claims would be ended and could not be brought again, they had to seek court approval under Federal Rule of Civil Procedure 41(a)(2). The court relied on the Second Circuit’s decision in Cheeks v. Freeport Pancake House, Inc., which requires court approval for this type of FLSA dismissal. The parties first had to discuss consenting to have all further proceedings handled by the assigned magistrate judge. If both consented, they had to file the required consent form by July 22,
- If either party did not consent, the parties had to file a joint letter by that date without identifying the party or parties withholding consent. They then had to submit a joint motion explaining why the settlement was fair by July 29,
- The motion had to include the settlement agreement and address the factors identified in Wolinsky v. Scholastic Inc.
The court stated that it would not approve settlement agreements containing confidentiality provisions. It also stated that documents concerning the settlement would not be filed under seal unless the parties made a specific showing overcoming the presumption of public access. If the settlement included attorney’s fees, the parties had to address whether the fees were reasonable and plaintiffs’ attorneys had to provide detailed time records.
2. Dismissal without prejudice. The parties could submit a voluntary dismissal under Rule 41(a)(1)(A) that dismissed the FLSA claims without prejudice, meaning the claims were not permanently barred. They also had to certify that there had been no settlement of the FLSA claims. The court stated that it would evaluate such dismissals to ensure they did not conceal a settlement. The parties had to submit the stipulation and certification by July 22, 2022. If they could not certify that no FLSA claims had been settled, they had to seek the court’s review described in the first alternative.
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 court explained that, under Second Circuit precedent, court approval was not required for a Rule 68 offer of judgment in an FLSA case. The parties had to submit the executed offer and acceptance, along with a proposed judgment, by July 22, 2022.
Disposition
The court issued directions concerning the settlement process and the parties’ required filings. It did not enter a dismissal, approve the settlement, enter judgment, or rule on the underlying FLSA claims.
Read the full 4-page opinion on CourtListener, the free public archive maintained by the Free Law Project.