News & Analysis as of

Fair Labor Standards Act (FLSA) Settlement Negotiations

Seyfarth Shaw LLP

Small Claims? Low Recovery? Big Fees!

Seyfarth Shaw LLP on

Seyfarth Synopsis: The Second Circuit held that attorneys’ fee awards in FLSA settlements are not limited by principles of “proportionality” between the fees and the amount of the settlement or subject to a 1/3 cap....more

FordHarrison

Judicial Approval Not Required for Offers of Judgment in FLSA Cases

FordHarrison on

On December 6, 2019, a sharply divided panel of the Second Circuit (covering New York, Connecticut, and Vermont) ruled that judicial approval of Fair Labor Standard Act (FLSA) settlements resolved under Federal Rule of Civil...more

Seyfarth Shaw LLP

Second Circuit: No Court Review Needed for FLSA Settlements by Offer of Judgment

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Seyfarth Synopsis: The Second Circuit held that FLSA settlements pursuant to Rule 68 Offers of Judgment do not require judicial approval.  The Court distinguished such settlements from Rule 41 stipulated dismissals, which...more

FordHarrison

Non-Kosher Provisions in FLSA Settlements in the Second Circuit

FordHarrison on

I came across a short court order a few days ago that admonished settling parties in an FLSA suit for including an impermissible provision in the settlement.  Vasquez v. T&W Rest., Inc., 2019 U.S. Dist. LEXIS 121129 (S.D.N.Y....more

Genova Burns LLC

Second Circuit Rules Court Approval or USDOL Supervision of Settlements Required in FLSA Suits

Genova Burns LLC on

On August 7, 2015, the Second Circuit ruled that suits brought under the Fair Labor Standards Act (“FLSA”) cannot be resolved privately and require approval of a federal court or supervision by the U.S. Department of Labor...more

Seyfarth Shaw LLP

Show & Tell: Second Circuit Holds FLSA Bars Private Settlements

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As we have noted in previous posts (most recently, here), courts have been paying increasingly close attention to the terms of FLSA settlements and, on occasion, refusing to approve agreements. Some parties have responded to...more

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