The Fifth Circuit recently became the first federal court of appeals to hold that employees who signed arbitration agreements should not receive notice of collective actions. This case of first impression among the courts of appeal could serve as a powerful tool for employers combatting collective actions under the Fair Labor Standards Act (FLSA). Accordingly, we think the decision is deserving of more detailed analysis than a mere summary. A Splintered Approach In ... Keep Reading »
Labor, Employment & ERISA Class Action Articles
The latest class action developments and trends in labor, employment and ERISA, including news, key cases, and strategies.
Equal Pay and Class Action Implications
After winning the World Cup on Sunday with a thrilling 2-0 victory over the Netherlands, the U.S. women’s national soccer team laid claim to being the best women’s soccer team in history. They celebrated their victory at the trophy presentation to the deafening sounds of stadium chants. Not “USA, USA,” but “Equal pay, Equal pay.” The U.S. players had already sued their national federation, the U.S. Soccer Federation, for a pay increase, asserting that the men’s team ... Keep Reading »
Opt-Out Arbitration Program Binds Employees in Wage and Hour Class Action
A recent decision by a Wisconsin district court illustrates the impact of an arbitration agreement on class actions. The plaintiffs alleged violations of the Fair Labor Standards Act (FLSA) and state wage and overtime laws, claiming that employees were not compensated for 15 minutes of activity at the start of every workday and that actual pay was understated for purposes of calculating overtime. The defendants moved to compel arbitration on an individual basis. The ... Keep Reading »
Don’t Count Your Chickens – Or State Citizens for CAFA Exceptions – Before They Hatch
The Ninth Circuit vacated a remand order implicating the local and home-state controversy exceptions to CAFA jurisdiction in a putative class action by former California resident employees of Kentucky Fried Chicken (KFC) for state wage-and-hour law violations. The court ruled that the plaintiffs did not meet their burden to prove that “greater than two-thirds of proposed class members” were residents of California to invoke the exceptions. Originally filed in ... Keep Reading »
Employers and Employees Look Ahead to Potential Impact of SCOTUS Rulings on Arbitrations vs Class Action Cases
Carlton Fields Shareholder Julianna Thomas McCabe was quoted by CNBC in an article about whether the U.S. Supreme Court will make it harder for workers to take their employers to court. A fair arbitration is better and faster than a trial for both parties, said McCabe, who leads the firm’s National Class Actions practice group. McCabe told CNBC the Supreme Court appears “extremely interested in this issue” ahead of oral argument in Henry Schein Inc. v. Archer and White ... Keep Reading »
Must a Plaintiff Representing Unnamed Parties Under California’s Private Attorney General Act Comply with Rule 23’s Requirements?
Must a plaintiff who brings an action under California’s Private Attorney General Act (PAGA) comply with Rule 23’s requirements? Although the Ninth Circuit has not addressed the issue, one California federal district court recently weighed in, reiterating the California Supreme Court’s 2014 decision in Iskanian v. CLS Transp. Los Angeles, LLC that a PAGA action is different than a class action and more akin to a qui tam suit. Plaintiff, a Costco employee, filed suit ... Keep Reading »
Supreme Court Upholds Use of Class Action Waivers in Employment Arbitration Agreements
In a significant decision awaited by U.S. employers since January 2017, the Supreme Court upheld the use of class action waivers in arbitration agreements. Justice Gorsuch wrote the majority opinion, which was joined by Justices Roberts, Kennedy, Thomas, and Alito. Justice Ginsburg filed an extensive dissenting opinion joined by Justices Breyer, Sotomayor, and Kagan. The decision answers a question that has loomed large for employers: Can they include class action ... Keep Reading »
Fifth Circuit Dashes Delivery Driver’s Bid to Keep Wage Hour Claims Out of Arbitration
In Edwards v. DoorDash, Inc., No. 17-20082 (5th Cir. Apr. 25, 2018), the Fifth Circuit Court of Appeals reaffirmed its position that arbitrability of claims, including whether class or collective claims must be arbitrated individually, is a threshold question that must be determined by the court prior to deciding certification motions. In Edwards, a driver asserted claims against a food-delivery service under the Fair Labor Standards Act (FLSA), asserting that he was ... Keep Reading »
FLSA Conditional Certification Standard Bites Plaintiffs
A district court in the Eastern District of Louisiana refused to conditionally certify a class of employees who accused their employer of intentionally underpaying and reducing hours from time records to avoid paying overtime under the Fair Labor Standards Act (FLSA). In Rowe, the named plaintiff and an opt-in plaintiff filed affidavits with their conditional certification motion, describing their personal experiences of having their working hours intentionally reduced ... Keep Reading »
Ninth Circuit Snubs Stolt-Nielsen, Holds Generic Employee Arbitration Agreement Permits Class-wide Arbitration
After an employer allegedly released personally identifiable information of its employees as the result of a phishing scam, plaintiff employee filed a putative class action lawsuit, alleging claims including negligence, breach of contract, invasion of privacy, and other claims. The employer moved to compel bilateral arbitration pursuant to the arbitration agreement plaintiff signed in connection with his employment. The district court found that the arbitration agreement ... Keep Reading »
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