Judicial Approval Not Required for Offers of Judgment in FLSA Cases

Shooman, Jeff - 300dpi
Jeff Shooman

Executive Summary: 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 Procedure 68’s offer of judgment mechanism is not required. In the Second Circuit, FLSA settlements typically require judicial approval for fairness under a 2015 Second Circuit decision called Cheeks v. Freeport Pancake House. However, the Second Circuit held that where FLSA plaintiffs resolve their disputes with employers by accepting an offer of judgment, judicial approval, in that narrow instance, is not required under Cheeks. Continue reading

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