Williams v. LIV UNLTD LLC

Background

Ricky Williams brought this Fair Labor Standards Act (FLSA) case against LIV UNLTD LLC on behalf of himself and all others similarly situated. On March 1, 2024, the court was notified that mediation had resulted in an agreement resolving all issues. The opinion does not describe the agreement’s payment amount or other settlement terms, and the court did not approve the settlement in this order.

Settlement-Approval Requirement

The court ordered that the parties could not dismiss the action with prejudice based on the settlement unless the settlement agreement was approved by either the court or the Department of Labor. A dismissal with prejudice would end the case and bar the same claims from being brought again. If the parties wanted court approval, they had to file a joint letter motion with the settlement agreement on the public docket by April 17, 2024. The motion had to explain why the proposed settlement was fair and reasonable, including the plaintiff’s possible recovery, the burdens and expenses the settlement would avoid, the risks of continued litigation, the negotiations, and the possibility of fraud or collusion. It also had to address whether there was a genuine dispute about the hours worked or compensation owed and the amount of attorney’s fees Williams’s lawyer would seek.

The court stated that it generally would not approve a settlement filed under seal or in redacted form absent special circumstances. It also warned that it was unlikely to approve a general release, or a release of claims unrelated to the wage-and-hour claims in the complaint and related state-law claims. If the parties believed unusual circumstances justified a broader release, their motion had to explain why. The court warned that failing to comply could lead to summary denial of the motion and sanctions against the attorneys.

Possible Dismissal Without Prejudice

The court noted that the Second Circuit had not resolved whether an FLSA case could be settled without court or Department of Labor approval and dismissed without prejudice under Federal Rule of Civil Procedure 41(a)(1)(A). A dismissal without prejudice would allow a new action, assuming the filing deadline had not expired, and would not have the same claim-preclusion effect as a dismissal with prejudice. If the parties chose this route, they had to file a stipulation under that rule within 30 days and include an affirmation from Williams’s lawyer stating that Williams had been clearly advised that the settlement would not prevent another lawsuit against the same defendant and affirming that the settlement agreement contained no release of the defendant. The court warned that this option carried a risk that the case could later be reopened.

Other Orders and Disposition

The court canceled all previously scheduled conferences and other deadlines. If no letter motion or stipulation was filed by April 17, 2024, the court ordered that a conference would be held on April 19, 2024, at 10:00 a.m. The order addressed the procedure for resolving the case after the reported mediation agreement; it did not decide the underlying FLSA claims.