Chen et al v. Zaza Japan Inc. et al

Filing 31

ORDER re: DE 30 Letter re: Revised Settlement Agreement. For the reasons set forth in the attached Order, the parties' request for Court approval of the revised Settlement Agreement is again denied without prejudice. The parties may re-submit a second revised Settlement Agreement in accordance with this Order for the Court's review. Ordered by Magistrate Judge Steven I. Locke on 9/1/2016. (Cea, Christine)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF NEW YORK
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XU CHEN, JIA JUN XU, JIAN FENG LIU,
-against-

Plaintiffs,

ORDER
15-CV-3073 (SIL)

ZAZA JAPAN INC., doing business as Zaza Japan
Asian Bistro & Hibachi, DAVID ZHU, ZHONG
YONG LIN, and JOHN DOES AND JANE DOES #
1-10,
Defendants.
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LOCKE, Magistrate Judge:
On June 29, 2016, the parties submitted a joint motion seeking approval of a
Settlement Agreement in this Fair Labor Standards Act action. See Docket Entry
(“DE”) [27]. At an August 16, 2016 hearing, the Court denied the motion without
prejudice because the Settlement Agreement contained impermissible release and
non-disparagement provisions. See DE [29]. Thereafter, on August 31, 2016, the
parties submitted a revised Settlement Agreement and requested Court approval.
DE [30]. Upon review of the revised Settlement Agreement, the Court finds that the
non-disparagement clause remains improper as it does not contain a carve-out for
truthful statements. See Lopez v. Nights of Cabiria, LLC, 96 F. Supp. 3d 170, 180, n.
65 (S.D.N.Y. 2015) (stating that a non-disparagement clause “must include a carveout for truthful statements about plaintiffs’ experience litigating their case.”).
Therefore, the revised Settlement Agreement fails to comply with Cheeks v. Freeport
Pancake House, Inc., 796 F.3d 199 (2d Cir. 2015).

Accordingly, the parties’ request for Court approval of the revised Settlement
Agreement is again denied without prejudice. The parties may re-submit a second
revised Settlement Agreement, executed by all parties, in accordance with this Order
for the Court’s review.
Dated:

Central Islip, New York
September 1, 2016

s/ Steven I. Locke
STEVEN I. LOCKE
United States Magistrate Judge

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