DeSimone v. TIAA Bank, FSB

Background

The parties had settled their dispute, including claims under the Fair Labor Standards Act (FLSA). After the settlement, the parties consented to Judge Barbara Moses’s authority over all remaining proceedings under 28 U.S.C. § 636(c).

What the Court Ordered

The court vacated all deadlines previously set in the case. It ordered the parties to submit by August 31, 2022:

- A joint letter explaining why the settlement is fair and reasonable under the factors identified in Wolinsky v. Scholastic Inc.; - A copy of the written settlement agreement, signed by all parties, which would be filed on the public docket; and - Any contingency-fee agreement and time and expense records needed to support a request for attorney’s fees and costs.

Court’s Warnings About the Proposed Settlement

The court cautioned that confidentiality provisions would rarely be appropriate in resolving a wage-and-hour case because of the policy concerns underlying the FLSA. It also warned that a non-disparagement clause should not prevent a plaintiff from making truthful statements about the plaintiff’s employment, the lawsuit, or the settlement.

The court further cautioned that courts in the district generally refuse to approve one-sided or overly broad general releases in FLSA settlements. The court stated that its fairness review also includes the reasonableness of attorney’s fees and costs. Any proposed fee award had to be included in the written settlement agreement, signed by the parties, supported by properly authenticated records, and accompanied by a detailed explanation. The court identified the degree of success obtained as the most important factor in evaluating the reasonableness of a fee award.

Disposition

Judge Moses ordered the deadlines vacated and required the parties to submit materials for review of their proposed FLSA settlement. The order did not approve the settlement or award attorney’s fees and costs.