Gorga v. City of New York

Background

The plaintiffs and the City of New York told the court that they had reached a settlement in this Fair Labor Standards Act case. The statute requires an employer that violates overtime-pay requirements to pay the unpaid overtime and an additional equal amount as liquidated damages.

Settlement review

The court explained that when parties settle Fair Labor Standards Act claims and seek dismissal under Rule 41 of the Federal Rules of Civil Procedure, the court must examine the settlement—including any proposed attorney-fee award—to ensure that it is fair. The order stated that the parties could instead consent to proceed before the assigned Magistrate Judge, who would then decide whether to approve the settlement. If all parties chose that option, they were directed to file a completed consent form by April 28, 2023.

The court also advised that it would not approve a settlement containing certain provisions unless the parties showed case-specific reasons supporting them. These provisions included confidentiality terms that lacked sufficient justification; releases or waivers covering claims that had not accrued or claims unrelated to wage-and-hour matters; and non-disparagement clauses that barred negative statements without an exception for truthful statements about a plaintiff’s experience litigating the case.

If the settlement contained any of those provisions, the parties were directed by April 28, 2023, to file a joint letter stating whether they wanted the court to consider approving the agreement with the provisions removed. The court noted that it could approve or reject the settlement but could not rewrite the agreement itself.

Disposition

Judge Jennifer H. Rearden issued instructions for the settlement-review process. This order did not approve or reject the settlement, enter a dismissal, or decide the underlying overtime claims.