Recently, several federal district courts and circuit courts of appeals have rendered decisions uncharacteristically protective, or some have argued paternalistic, toward plaintiffs in Fair Labor Standards Act (FLSA) cases. In Cheeks v. Freeport Pancake House, the U.S. Court of Appeals for the Second Circuit held that plaintiffs cannot settle FLSA claims through private stipulated dismissals with prejudice in the absence of court approval or the U.S. Department of Labor (DOL) supervision.1 Then, in Lewis v. Epic Systems Corp., the U.S. Court of Appeals for the Seventh Circuit determined that employment arbitration agreements that require employees to waive the right to engage in FLSA class or collective action violate the National Labor Relations Act (NLRA).2
In Cheeks, the Second Circuit emphasized the public policy rationales underlying the FLSA and left undefined the parameters by which courts are to review private settlement agreements. As a result, some district courts have ushered in a new wave of judicial protectionism under the umbrella of Cheeks, going beyond the court’s holding. To the surprise of many, the Supreme Court denied certiorari review of Cheeks, thus, declining to provide guidance for the time being.
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