Neikirk v. Ephraim McDowell Health, Inc., 5:23-cv-00153

Plaintiffs Kelly Neikirk and Ernest Hale, on behalf of themselves and similarly situated individuals, brought a Fair Labor Standards Act (FLSA) action against Ephraim McDowell Health, Inc.
The parties reached a settlement and jointly moved for court approval of their FLSA settlement agreement.
The matter is before the U.S. District Court for the Eastern District of Kentucky, Lexington Division.
The recent case law, particularly Gilstrap v. Sushinati LLC (S.D. Ohio 2024), questions whether federal courts can or should approve FLSA settlements.
The court’s analysis focused on whether FLSA actions are an exception to the general rule that federal courts do not approve private settlement agreements.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether court approval is required or permitted for FLSA settlement agreements	Parties jointly seek court approval, assuming or adhering to traditional practice	Agrees to court approval process, per previous practice	Court lacks authority to approve FLSA settlement agreements; motion denied.

Gilstrap v. Sushinati LLC, 774 F. Supp. 3d 710 (S.D. Ohio 2024) (held that neither the FLSA nor binding authority requires or permits court approval of FLSA settlement agreements)
Caplan v. Fellheimer Eichen Braverman & Kaskey, 68 F.3d 828 (3d Cir. 1995) (explained courts typically lack the authority or resources to review all private settlements)
Lynn’s Food Stores, Inc. v. United States, 679 F.2d 1350 (11th Cir. 1982) (early precedent for judicial review of FLSA settlements, but not followed by the Sixth Circuit)