Gomez v. Pick A Boo Daycare Corp.
- Sarah Netburn
- 1:23-cv-10282
- U.S. District Court · Southern District of New York
- 3
In Gomez v. Pick A Boo Daycare Corp., Judge Clarke ordered settlement details and supporting materials for review of the FLSA settlement.
The plaintiff and defendants in the FLSA case, including their attorneys, must provide the settlement terms and required supporting information to the court.
What happened
In Misselys Beltre Gomez v. Pick A Boo Daycare Corp., the parties told the court they had reached a settlement in a Fair Labor Standards Act case. The settlement could not take effect privately without court or Department of Labor approval.
The court required the parties to submit the settlement terms within 30 days. They also must provide a joint letter of no more than five pages explaining why the agreement is a fair and reasonable compromise, including information about five factors such as possible recovery, litigation risks, and whether the agreement resulted from arm’s-length negotiations.
Judge Jessica G. L. Clarke also required factual support for any attorney’s-fee award and support, with relevant case citations, for any release, confidentiality, or non-disparagement provision. The court did not approve the settlement in this order.
The detailed version
- Gomez v. Pick A Boo Daycare Corp. · No. 1:23-cv-10282
- Sarah Netburn
- May 20, 2024
Background
The court stated that the parties had reached a settlement in this Fair Labor Standards Act (FLSA) case. Under the court’s discussion of applicable law, the parties could not privately settle FLSA claims without approval from the district court or the Department of Labor. The court therefore had to determine whether the proposed agreement was fair and reasonable.
Required settlement information
The court ordered the parties, within 30 days, to provide the settlement terms. They must also submit a joint letter of no more than five pages explaining why the agreement reflects a fair and reasonable compromise of disputed issues. The letter must address, at a minimum, these five considerations:
- The plaintiff’s possible range of recovery.
- How the settlement would allow the parties to avoid expected burdens and expenses of proving their claims and defenses.
- The seriousness of the litigation risks faced by the parties.
- Whether experienced counsel reached the agreement through arm’s-length bargaining.
- The possibility of fraud or collusion.
Attorney’s fees and settlement provisions
If the agreement includes attorney’s fees, the parties must provide evidence establishing a factual basis for the award. The court specifically required contemporaneous billing records showing, for each attorney, the date, hours worked, and nature of the work.
If the agreement includes a release, confidentiality provision, or non-disparagement provision, the parties must provide support for each provision, including citations to relevant case law.
Disposition
Judge Jessica G. L. Clarke ordered the parties to provide the settlement terms and supporting materials. The order did not approve or reject the settlement. It also reminded the parties that they could consent to a magistrate judge’s jurisdiction to review and approve the settlement if all parties agreed, and that withholding consent would have no adverse consequences.
Classification basis
This is a procedural order concerning court review of an FLSA settlement, rather than a decision on the merits of the underlying claims.
Read the full 3-page opinion on CourtListener, the free public archive maintained by the Free Law Project.