Joseph v. Metropolitan Transportation Authority

Background

The court was advised that the parties had reached a settlement in this Fair Labor Standards Act (FLSA) case. The order did not approve the settlement or dismiss the action with prejudice. Instead, it set the requirements for obtaining approval and dismissal.

Settlement-approval requirements

The court stated that the action could not be dismissed with prejudice unless the settlement agreement was approved either by the court or by the U.S. Department of Labor. If the parties sought dismissal with prejudice, they had to file a joint letter request for court approval, together with the settlement agreement, by September 19, 2022. Alternatively, they could provide documentation showing Department of Labor approval.

The request had to explain why the settlement was fair and reasonable and address at least these considerations:

- the plaintiffs’ possible recovery; - the burdens and costs the settlement would avoid in proving the claims and defenses; - the seriousness of the litigation risks; - whether experienced counsel negotiated the agreement at arm’s length; and - the possibility of fraud or collusion.

The request 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.

Attorney fees and settlement terms

Any request for attorney fees had to include contemporaneous billing records for each attorney, showing the date, time spent, and nature of the work. The court also stated that, absent special circumstances, it would not approve a settlement filed under seal or in redacted form. Without compelling circumstances, it would not approve sweeping nondisclosure provisions or broad releases of claims unrelated to FLSA issues.

Other directions and disposition

The parties could voluntarily consent to have Magistrate Judge Jennifer Willis oversee settlement approval. If they did so, they had to file a completed consent form by September 6, 2022. The order stated that consent was voluntary and that withholding consent would have no negative consequences. Any appeal would go directly to the U.S. Court of Appeals for the Second Circuit. The Clerk of Court was directed to terminate pending motions and vacate conferences.

Judge Analisa Torres therefore issued a procedural order governing approval of the reported settlement; the opinion did not decide the underlying wage claims or state that the case had been dismissed.