What is the right way to dismiss a case the parties have settled, and are FLSA cases different? Typically, when parties to a lawsuit settle a case, they merely alert the court of the settlement and then file a stipulation of dismissal with prejudice. Other times, a plaintiff may choose to unilaterally dismiss a claim without prejudice so as to have the ability to file again or in another forum.
The Fair Labor Standards Act allows employees to sue if they believe their employer has not paid them proper wages for the time worked. FLSA claims include those for unpaid overtime, misclassification of an employee as exempt, or failing to meet the required minimum wage. The FLSA specifically requires that any settlement of an FLSA claim be approved by either the federal court or the Department of Labor. The public policy for this is to make sure that the settlement is “fair and reasonable to the employee.”
In practice, some parties to an FLSA action get around the court review step by simply settling a case and filing a joint stipulation of dismissal with prejudice instead of filing the entire settlement agreement. In 2015, the Second Circuit issued an opinion that prohibited that practice. In Cheeks v. Freeport Pancake House, the parties negotiated an FLSA settlement and, instead of filing for approval with the district court, they filed a stipulation to dismiss all claims, with prejudice, pursuant to...
Welcome to Reality Check, NewsGuard’s nonpartisan newsletter that tracks the false claims and conspiracy theories that shape our world — and who’s behind them. Please support us by becoming a premi...