English v. Urban Resource Institute

Background

Dominic English brought this action against Urban Resource Institute under the Fair Labor Standards Act (FLSA), a federal law governing wages and overtime. The court was informed that the parties had reached a settlement in principle through the court-annexed Mediation Program.

Order

The court ordered the parties, by July 7, 2023, to submit their settlement agreement and a joint letter explaining the basis for the proposed settlement. If the parties intended to dismiss the case under Rule 41 of the Federal Rules of Civil Procedure, the letter had to explain why the settlement was fair and reasonable, addressing the factors identified in the court’s cited precedent. The parties also had to address any incentive payment to English and any attorney’s fee award to his counsel, including supporting documentation when appropriate.

The order did not approve the settlement. It explained that a proposed FLSA settlement and any proposed attorney’s fee award must be reviewed for fairness before an anticipated dismissal can take effect. The parties could instead consent to proceed for all purposes before the assigned magistrate judge, who would then decide whether to approve the settlement; if they chose that option, they had to file the completed consent form by July 7, 2023.

Settlement Provisions

The court advised that it would not approve a settlement containing a confidentiality provision unless the parties showed case-specific reasons sufficient to overcome the public’s common-law right of access to court documents. It also would not approve a release or waiver covering claims that had not accrued or claims unrelated to wage-and-hour matters unless the parties provided case-specific justification. A provision restricting English from making negative statements about Urban Resource Institute would also require a carve-out for truthful statements about his experience litigating the case, unless the parties justified the restriction without that carve-out.

If the agreement contained any of those provisions, the parties had to state whether they wanted the court to consider approving the agreement with the provisions removed. The order explained that the court could approve or reject an FLSA settlement but could not rewrite the agreement itself. The initial pretrial conference scheduled for July 5, 2023, and all pending deadlines were adjourned indefinitely.

Effect of the Order

The order required additional settlement submissions and preserved the court’s fairness review. It did not decide whether English was owed overtime compensation, did not approve or reject the proposed settlement, and did not enter a final dismissal.