Correa v. Green City Cleaner NYC LLC

Background

The plaintiffs, including Heidy Andrea Gil Correa individually and on behalf of others similarly situated, sued Green City Cleaner NYC LLC and other defendants in a Fair Labor Standards Act case. The court was notified that the parties had reached a settlement. The opinion does not state the settlement amount, its other terms, or whether the court approved it.

Settlement-Approval Requirements

The court explained that the parties could not dismiss the action with prejudice based on the settlement unless either the court or the Department of Labor approved the agreement. The parties were required to file a letter motion and the settlement agreement on the public docket within thirty days, on or before February 17, 2023. The letter motion had to explain why the proposed settlement was fair and reasonable.

The court instructed the parties to address at least five factors: the plaintiff’s possible recovery; the burdens and expenses the settlement would avoid; the seriousness of the litigation risks; whether experienced counsel negotiated at arm’s length; and the possibility of fraud or collusion. The letter also had to address whether there was a genuine dispute about the hours worked or compensation owed and how much the plaintiff’s attorney would seek in fees. Unless special circumstances existed, the court said it would not approve a settlement filed under seal or in redacted form.

Disposition

Judge J. Paul Oetken directed the parties to file the required letter or stipulation and settlement agreement by February 17, 2023. The order did not approve or reject the settlement. It also adjourned all other filing deadlines, conference dates, and the trial date without setting replacement dates.