The Second Circuit vacated a class certification order issued by the Southern District of New York, finding that Rule 23(b)(3)'s predominance and superiority requirements could not be met given the necessity of applying 27 states' laws to putative class claims for breach of fiduciary duty, legal malpractice and breach of contract. The case involved a "novel approach to dispute resolution that continues to provoke a debate among experts in legal ethics." The plaintiffs ... 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.
Eleventh Circuit Holds That Defendant Cannot Be Precluded From Asserting Its Arbitration Rights Against Future Class Members
The Eleventh Circuit recently held that a district court lacked jurisdiction to determine, pre-certification, that a defendant’s waiver of its right to compel named plaintiffs to arbitrate their claims precluded it from asserting its arbitration rights against putative unnamed class members. The case involved five putative class actions against the defendant bank and its predecessor related to allegedly improper checking account overdraft fees. Plaintiffs’ customer ... Keep Reading »
Circuit Court Holds Comcast Does Not Foreclose Certification of Labor Law Class With Individualized Damages
In a class action brought under the Fair Labor Standard Act and New York Labor Law, the Second Circuit court of appeals reversed the district court’s denial of class certification and held that the Supreme Court’s 2013 decision in Comcast Corp. v. Behrend does not overrule the established principle that “the fact that damages may have to be ascertained on an individual basis is not sufficient to defeat class certification under Rule 23(b)(3).” Plaintiff alleged that ... Keep Reading »
Ninth Circuit Issues Companion Cases Addressing Evidence Required To Show That The Amount In Controversy Requirement Has Been Met When Challenged on Removal
Through a pair of opinions issued the same day, the Ninth Circuit attempted to clarify the evidence required for a defendant to meet its burden of showing that the amount in controversy exceeds CAFA’s $5 million threshold when a plaintiff moves to remand. In the first opinion, Ibarra v. Manheim Investments, Inc., the plaintiff filed suit in state court seeking to represent a class of employees allegedly injured by the defendant’s "pattern and practice of failing to pay ... Keep Reading »
California’s Inconsistent Treatment of Pre-Dispute Waivers in Arbitration Agreements Will Remain in Place
This week, the U.S. Supreme Court declined to grant review in Iskanian v. CLS Transportation Los Angeles, LLC, leaving in place a California Supreme Court holding that pre-dispute arbitration agreements cannot require employees to waive their right to bring a representative action on behalf of themselves and other "aggrieved employees" under California's Private Attorneys General Act (PAGA). Following U.S. Supreme Court precedent interpreting the Federal Arbitration ... Keep Reading »
Eleventh Circuit Affirms CAFA-Based Remand Order
Just two weeks after the Supreme Court's decision in Dart Cherokee Basin Operating Co. v. Owens, the Eleventh Circuit affirmed a CAFA-based remand order where the defendant failed to establish by a preponderance of the evidence that the amount in controversy exceeded the jurisdictional threshold for a CAFA removal. Plaintiff, a former Lilly employee, alleged that Lilly failed to make certain incentive payments due her and other similarly situated individuals who had ... Keep Reading »
California District Court Finds that CAFA’s Amount-in-Controversy Requirement was Satisfied; Denies Motion to Remand
The U.S. District Court for the Northern District of California denied plaintiff’s motion to remand, holding that plaintiff’s claim for unpaid wages and overtime satisfied CAFA’s amount-in-controversy requirement. Plaintiff’s class action complaint alleged that Finish Line violated the California Labor Code and Business and Professions Code by, among other things, failing to pay its hourly employees regular and overtime wages on a “regular and consistent basis.” Thus, ... Keep Reading »
No Pay Required for Amazon’s Warehouse Workers During Post-Shift Security Screening
On December 9, the Supreme Court held that hourly workers in Amazon warehouses need not be compensated for the time they spent waiting to undergo security screening at the end of their shifts. The case, Integrity Staffing Solutions, Inc. v. Busk, is the Court’s most recent opinion on the issue of compensatory time under the federal Fair Labor Standards Act (FLSA). Integrity Staffing Solutions provides staffing for Amazon warehouses nationwide. Hourly warehouse workers ... Keep Reading »
Ninth and Tenth Circuits Address Removal Under CAFA’s “Mass Action” and “State Action” Provisions
In Corber v. Xanodyne Pharmaceuticals, the Ninth Circuit – on rehearing en banc – examined the applicability of the “mass action” provision of CAFA, which provides federal jurisdiction for any civil action in which monetary relief claims of 100 or more persons are “proposed to be tried jointly.” Pursuant to California Code of Civil Procedure 404.1, plaintiffs moved for coordination of their cases alleging injuries relating to ingestion of a drug ingredient. Defendants ... Keep Reading »
Division I Athlete Commences Collective Action Seeking Pay For Play
A complaint recently filed in the Southern District of Indiana alleges that the NCAA and its Division I Member Schools have jointly agreed and conspired to engage in a widespread pattern, policy, and practice of failing to pay division I student athletes in violation of the wage-and-hour provisions of the Fair Labor Standards Act (FLSA). Samantha Sackos, a former division I collegiate soccer player who played at the University of Houston, claims that she, and all ... Keep Reading »
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