New York federal judges are split over whether litigants can use a procedural work-around to settle claims under the Fair Labor Standards Act (FLSA) without the approval of a judge or the Department of Labor. This week, a Manhattan district judge called on the U.S. Court of Appeals for the Second Circuit to settle the dispute, criticizing the tactic as an “end run” around judicial oversight.
Southern District Judge Jesse Furman said he is among a minority—but a growing number—of judges who have found that settling FLSA claims under Rule 68 of the Federal Rules of Civil Procedure does not exempt parties from the oversight requirement for private settlements of FLSA claims, which the Second Circuit established in a 2015 decision, Cheeks v. Freeport Pancake House, 796 F.3d 199, 200.
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