The suit was filed on behalf of people arrested on misdemeanor drug and weapons charges. They were strip-searched at Rikers Island and other city jails. Two plaintiffs said they were forced to undergo gynecological exams.
Under the agreement reached last week, class members can receive between $1,800 and $2,900 each, depending on how many people respond.
The New York City Law department said Monday that the settlement is the final step in a lengthy process. It said Correction Department procedures were modified in 2007.
The case included people arrested, but not convicted, between July 15, 1999 and Oct. 4 2007. The court has already ruled that the practice violated the prisoners' constitutional rights.