Mei Xing Yu v. Hasaki Restaurant, Inc.
This Opinion and Order addresses a divided question among district courts: whether settlements of Fair Labor Standards Act (FLSA) claims via Federal Rule of Civil Procedure 68 offers of judgment require judicial or Department of Labor (DOL) approval. Citing the Second Circuit's reasoning in Cheeks v. Freeport Pancake House, Inc., the court concludes that such approval is indeed necessary. The decision emphasizes the FLSA's purpose of protecting employees from unequal bargaining power and the potential for abuse in private settlements. The court argues that FLSA claimants lack the capacity to enter binding agreements without court or DOL oversight. The order is certified for interlocutory appeal due to the substantial ground for difference of opinion on this controlling question of law among courts in the Circuit.