April 14, 2020 Articles

A Difficult Hurdle: FLSA Supervision in the Second Circuit

The court’s Hasaki opinion may impact the decisions of other courts confronted with the issue of whether Rule 68 offers of judgment require court approval.

By Dustin Crawford
A circuit split over this issue is almost certain to result.

A circuit split over this issue is almost certain to result.

In 2019, In Mei Xing Yu v. Hasaki Restaurant, Inc., the Second Circuit Court of Appeals carved out a new exception to the generally applicable rule that Fair Labor Standards Act (FLSA) claims can only be settled under the supervision of the Department of Labor (DOL) or after a district-court judge determines that the settlement represents a reasonable compromise over a bona fide dispute, 944 F.3d 395 (2019).

In Hasaki, the Second Circuit held that when an FLSA plaintiff settles his or her claim by accepting an offer of judgment pursuant to F.R.C.P. 68, the court must enter the judgment and dismiss the case without first reviewing and approving the settlement agreement. Employment litigators prosecuting or defending FLSA claims should pay close attention to how the Hasaki court’s opinion may impact the decisions of other courts when determining whether offers of judgment under Rule 68 must be reviewed and approved by the court. 

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