Second Circuit Opinion: Rule 68 Settlement of FLSA Claims Does Not Require Court Approval

Since 2015, Cheeks v Freeport Pancake House, Inc., a case from the Second Circuit Court of Appeals, required settlements of federal wage and hour claims under the FLSA to be submitted for review and approval by the district court in order to obtain dismissal of the case with prejudice. In a recent case, Yu vs. Hasaki Rest, Inc., the plaintiff accepted a Rule 68 offer of judgment and the parties notified the district court of the accepted offer. The district court ordered them to submit the settlement for Cheeks review. The parties disagreed that Cheeks was applicable to a Rule 68 judgment. The court granted permission for the parties to file an interlocutory appeal to the Second Circuit for clarification. Find out how their appellate court’s ruling affects settlements of FLSA claims and what questions remain here.