A sharply divided panel of the U.S. Court of Appeals for the Second Circuit has held that parties to federal wage-and-hour disputes are not required to obtain judicial approval for resolving claims under the Fair Labor Standards Act.

The ruling, in Yu v. Hasaki Restaurants, involved settlements under Rule 68 of the Federal Rules of Civil Procedure, a risk-shifting tool designed to encourage settlements in civil litigation by allowing defendants to send plaintiffs an offer of judgment at any point prior to 14 days before trial. Under Rule 68, if a plaintiff accepts the offer, a clerk is generally directed to automatically enter judgment, without a judge having to sign off on the agreement.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]