Melendez v. Cosan Construction Corp.

Background

Hector Melendez brought this action against Cosan Construction Corp. and other defendants under the Fair Labor Standards Act, a federal law governing wages and working hours. On March 13, 2023, the parties filed a stipulation of dismissal. The opinion states that, in most cases, settlements of Fair Labor Standards Act claims must be approved by the court.

Court’s Actions

The court lifted the stay in the case. By a separate order issued the same day, it referred the case to the designated magistrate judge to decide whether to grant the expected motion seeking settlement approval.

To conserve resources and speed the case’s resolution, the court ordered the parties to discuss whether they would consent under 28 U.S.C. § 636(c) to conducting all further proceedings before the magistrate judge. If both parties consented, they were required to file a completed consent form by March 28, 2023. If either party did not consent, the parties were required to file a joint letter by that date stating that they did not consent, without identifying the party or parties who declined. The court stated that there would be no adverse consequences for declining consent. If approved, consent would place all further proceedings before the magistrate judge, with any appeal taken directly to the United States Court of Appeals for the Second Circuit.

Disposition

The order lifted the stay, referred settlement-approval review to the magistrate judge by separate order, and required the parties to address consent to magistrate-judge proceedings. It did not decide whether to approve the settlement or resolve the underlying Fair Labor Standards Act claims.