Depositing Funds to Moot Wage and Hour Claims

Douglas, Jeff - 300dpi
Jeffrey Douglas

While wage and hour class and collective actions continue to prove costly for employers, defense counsel have tinkered with different creative methods to attempt to preemptively moot an individual plaintiff’s claims prior to the conditional certification of a collective or class action.  Although courts are currently split on the viability of such tactics, the Second Circuit Court of Appeals (“Second Circuit”) has left the door open for defendants to attempt a preemptive strike. Continue reading

No Double Recovery Under State and Federal Wage and Hour Law in New York

Shooman, Jeff - 300dpi
Jeff Shooman

Executive Summary: In New York, with its robust state New York Labor Law (“NYLL”), one can receive liquidated damages on top of compensatory damages greater than liquidated damages under the Fair Labor Standards Act (“FLSA”).  The U.S. Court of Appeals for the Second Circuit has determined, however, that one cannot receive a double recovery under the NYLL and FLSA for liquidated damages.  That principle was reaffirmed in early October.    Continue reading

Settlement Talk Over Sushi: The Second Circuit Set to Decide Key FLSA Settlement Issue

Ryan, Patrick - 300dpi
Pat Ryan

Executive Summary:    Earlier this week, the Second Circuit Court of Appeals heard oral arguments regarding whether judicial review of a Fair Labor Standards Act (“FLSA”) settlement is required before entry of an offer of judgment pursuant to Rule 68 of the Federal Rules of Civil Procedure (“FRCP”).  While there is longstanding history mandating court approval of FLSA settlements, the majority of district courts in the Second Circuit—unlike most other Circuits—have allowed Rule 68 settlements absent judicial approval.  As such, employers in this Circuit have increasingly tried to use Rule 68 to avoid judicial scrutiny of settlement agreements.  After hearing oral arguments in Yu v. Hasaki Restaurant, Inc., 319 F.R.D. 111 (S.D.N.Y. 2017) this week, the Second Circuit appears primed to weigh in on this unsettled and controversial issue—which will determine whether judicial review or a system resembling private party contracting will govern in the Second Circuit.  Continue reading

New York City Considering Mandatory Minimum Wage for App-Hail Drivers

Ferrier, Valerie - 300dpi
Valerie Ferrier

Executive Summary: The introduction of ride-hailing apps has upended the taxi and for-hire car industry in New York City. What began with a promise of independence and wealth for drivers has actually pushed more into dire financial straits, as competition has increased. Now, following a string of driver suicides, New York City’s Taxi and Limousine Commission (“TLC”) is considering imposing minimum wage requirements on certain app-hailing services like Uber and Lyft. Continue reading