Hernandez v. Il Commendatore Restaurant, Inc.

Background

Dionicio Hernandez sued Il Commendatore Restaurant, Inc. and Adele Gallo on behalf of himself and others similarly situated in a proposed collective action under the Fair Labor Standards Act (FLSA). The defendants made an offer under Federal Rule of Civil Procedure 68, which permits a defending party to offer the opposing party a specified judgment. The offer provided for a total payment of $70,000, payable 21 days after the court entered the offer of judgment.

Court’s Analysis

The court explained that the Second Circuit had held in a prior case that courts do not need to approve Rule 68 offers of judgment resolving FLSA claims. Judge Broderick stated that this precedent required entry of the judgment despite tension with another Second Circuit decision requiring judicial review of typical FLSA settlements.

The court expressed concern that the materials did not disclose the amount of the plaintiff’s attorneys’ fees or what percentage of the total payment those fees represented. The materials also did not describe any waivers or releases, so the court could not evaluate whether they were overly broad. Nevertheless, the court concluded that Second Circuit precedent required it to enter the judgment.

Disposition

The court entered judgment for Dionicio Hernandez against the defendants for $70,000. The action was dismissed with prejudice as against the defendants. If the defendants failed to make a required payment when due, they would be responsible for costs and attorneys’ fees incurred in enforcing the judgment, in addition to the judgment amount and less any payments already made. The Clerk was directed to close the case. The opinion does not report a determination of whether the defendants violated the FLSA on the merits.