FLSA Settlements Face Challenges In NY After Cheeks Ruling

Law360 (August 3, 2018, 11:27 AM EDT) -- Cheeks v. Freeport Pancake House Inc.[1] was a case that completely changed the way in which two parties can settle a claim pursuant to the Fair Labor Standards Act. Cheeks arose after an individual plaintiff settled an FLSA wage claim with defendants and filed a stipulation seeking to dismiss all claims with prejudice under Rule 41(a) of the Federal Rules of Civil Procedure. While this used to be standard procedure in FLSA cases, the district court rejected the dismissal and instead found that all FLSA settlements now had to be reviewed and approved by the court. The plaintiff appealed, and the...

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