Picerni v. Bilingual Seit & Preschool Inc.
925 F. Supp. 2d 368
E.D.N.Y2013Background
- This FLSA case involves a former teacher alleging unpaid hours kept her wage below minimum.
- Plaintiff sought FLSA collective action relief and class action under NY and NYC law, plus a common law contract claim.
- Defendant has not appeared; plaintiff accepted a Rule 68 offer of judgment.
- The court previously held FLSA settlements require court approval; October 19, 2012 order instructed a fairness hearing and motion for approval.
- Plaintiff later filed a motion arguing the settlement and fees were reasonable; the court vacated the October 19 order and entered judgment.
- The court ultimately declines to treat the FLSA as an exempt statute for Rule 41, allowing voluntary dismissal at risk to the employer.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is the FLSA an exemption from Rule 41 dismissal requirements? | Plaintiff argues FLSA is not exempt. | Defendant argues FLSA is an exempt statute. | No; FLSA is not exempt from Rule 41. |
| Can parties privately settle an FLSA case post-filing without court approval? | Plaintiff asserts dismissal possible without court scrutiny. | Defendant seeks court-approved, fair settlement. | Parties may dismiss without court approval if employer bears the risk. |
| Is a fairness hearing required for private FLSA settlements? | Plaintiff contends hearing unnecessary given full recovery. | Defendant seeks court oversight to ensure fairness. | Not mandatory; review may be avoided where parties agree to full recovery. |
| Should confidential provisions affect enforceability or require court intervention? | Plaintiff notes confidentiality concerns but seeks dismissal rights. | Defendant prefers confidentiality protections via private settlement. | Confidentiality concerns acknowledged; private settlements may proceed with risk to employer. |
Key Cases Cited
- Brooklyn Savings Bank v. O’Neil, 324 U.S. 697 (U.S. 1945) (releases cannot waive liquidated damages in non-bona fide disputes)
- Gangi v. D.A. Schulte, Inc., 328 U.S. 108 (U.S. 1946) (bona fide dispute required for pre-litigation settlements; releases not enforceable otherwise)
- Lynn’s Food Stores, Inc. v. United States, 679 F.2d 1350 (11th Cir. 1982) (private settlements not approved unless 100% of wages plus liquidated damages; court approval generally required)
- Martinez v. Bohls Bearing Equipment Co., 361 F.Supp.2d 608 (W.D. Tex. 2005) (discusses private settlements under FLSA and bona fide dispute concept)
- Dees v. Hydradry, Inc., 706 F.Supp.2d 1227 (M.D. Fla. 2010) (court review of private FLSA settlements; Rule 41 scrutiny)