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Sutherland v. Ernst & Young LLP (2d Cir. 2013)

Articles Discussing Case:

Second Circuit Enhances Employers’ Ability to Avoid FLSA Collective Actions Through Arbitration Agreements

Ogletree Deakins • September 03, 2013
Sutherland v. Ernst & Young LLP, No. 12-304 (2d Cir. Aug. 9, 2013): In a significant victory for employers, the Second Circuit Court of Appeals endorsed class waivers of Fair Labor Standards Act (FLSA) claims even if such waiver removes the financial incentive to pursue individual wage and hour claims. The holding reversed the U.S. District Court for the Southern District of New York and was consistent with the recent decision by the U.S. Supreme Court in American Express Co. v. Italian Colors Restaurant, which held that the Federal Arbitration Act does not permit courts to invalidate a contractual waiver of class arbitration on the ground that the plaintiff’s cost of individually arbitrating a federal claim exceeds the potential recovery

Second Circuit Rules Class Action Waivers In Arbitration Agreements Can Be Enforced In FLSA Suits

Phelps Dunbar LLP • August 15, 2013
On August 9, 2013, the United States Second Circuit Court of Appeals held that an employee cannot invalidate a class action waiver provision in an arbitration agreement, even when the waiver removes the financial incentive for her to pursue a claim under the Fair Labor Standards Act. See Sutherland v. Ernst & Young LLP, 2013 WL 4033844 (2nd Cir. Aug. 9, 2013). The Sutherland Court’s holding was largely premised upon the supervening decision of the United States Supreme Court in American Express Co. v. Italian Colors Restaurant, 133 S. Ct. 2304 (2013), which held that the Federal Arbitration Act does not permit the invalidation of class action waivers merely because a plaintiff’s costs in arbitrating a federal statutory claim would exceed the potential recovery.