Meyer v. The Literal Co.

Background

The parties advised the U.S. District Court for the Southern District of New York that they had reached a settlement in this Fair Labor Standards Act (FLSA) case. The court explained that parties may not privately settle FLSA claims without approval from the district court or the Department of Labor.

Court’s Required Review

The court stated that it must determine whether the proposed settlement is fair and reasonable by considering the total circumstances. The listed factors include the plaintiffs’ possible recovery, the burdens and expenses the settlement would avoid, the litigation risks, whether experienced counsel reached the agreement through arm’s-length bargaining, and the possibility of fraud or collusion.

The court also stated that it must separately evaluate the reasonableness of any attorney’s-fee award. If the agreement includes fees, the parties must provide evidence supporting the award, including contemporaneous billing records showing each attorney’s date of work, hours spent, and the nature of the work. If the agreement includes a release, confidentiality provision, or non-disparagement provision, the parties must support each provision with relevant case citations.

Order

Judge Jessica G. L. Clarke ordered the parties to provide the settlement terms by April 12, 2024. The parties also must submit a joint letter of no more than five pages explaining why they believe the settlement is a fair and reasonable compromise of disputed issues and addressing the listed factors. The court reminded the parties that they may consent to have a magistrate judge review and approve the settlement if all parties agree, without adverse consequences for withholding consent.

The order did not approve or reject the settlement. In light of the settlement in principle, the Clerk of Court was directed to terminate ECF Nos. 29 and 38 as moot.