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Seventh Circuit Adopts More Flexible Standard for Issuing Notice in Collective Actions
In a significant shift from longstanding precedent, the U.S. Court of Appeals for the Seventh rejected the widely used two-step “Lusardi”1 framework for issuing notice in collective actions under Section 216(b) of the Fair Labor Standards Act (FLSA),
TakeawaysThe Seventh Circuit found the traditional two-step approach in collective actions too lenient, but more recent frameworks too restrictive.The panel rejected a rigid test in favor of giving courts flexibility to decide in each case whether they have the evidence they need to make the determination.In a significant departure from the traditional approach, courts must give employers the opportunity to rebut plaintiffs’ evidence that potential opt-ins are similarly situated.Related links
On August 16, 2024, the Seventh Circuit Court of Appeals weighed in on whether out-of-state plaintiffs must satisfy personal jurisdiction requirements to participate in a collective action under the Fair Labor Standards Act (FLSA). In a 2–1 decision, the Seventh Circuit held they must, joining the Third, Sixth, and Eighth
The U.S. Court of Appeals for the Seventh Circuit joins a growing number of federal circuits to hold the U.S. Supreme Court’s 2017 decision in Bristol-Myers Squibb v. Superior Court, that sharply limited the use of nationwide multi-plaintiff suits, applies to putative Fair Labor Standards Act (FLSA) collective actions. Vanegas v. Signet Builders, No. 23-2964 (7th Cir. Aug. 16, 2024).
The Sixth Circuit has become the second federal appeals court to toughen the standard for plaintiffs seeking court-authorized notice to potential claimants in a collective action under the Fair Labor Standards Act (FLSA). On May 19, 2023, the U.S. Court of Appeals for the Sixth Circuit held in Brooke
On May 19, 2023, in Clark v. A&L Home Care and Training Center, LLC., the U.S. Court of Appeals for the Sixth Circuit rejected the familiar two-step certification procedure in collective actions under the Fair Labor Standards Act (FLSA), instead requiring lead plaintiffs to demonstrate a “strong likelihood” that other
A federal district court located within the jurisdiction of the U.S. Court of Appeals for the Fourth Circuit has adopted the heightened standard for certification of a collective action under the Fair Labor Standards Act (FLSA) established in a 2021 landmark opinion by the U.S. Court of Appeals for the Fifth Circuit. Mathews v. USA Today Sports Media Group, LLC, No. 1:22-cv-1407 (E.D. Va. Apr. 14, 2023).
On April 14, 2023, the United States District Court for the Eastern District of Virginia (Ellis, J.) declined to conditionally certify a collective of USA Today sports website editors, ruling that the familiar two-step Fair Labor Standards Act (FLSA) collective certification process would lead to irrelevant parties learning of and
The U.S. Supreme Court has declined to settle the circuit split on whether its 2017 decision in Bristol-Myers Squibb Co. v. Superior Court of Cal. applies to collective actions brought under the Fair Labor Standards Act.
In Bristol-Myers, a mass tort action, the justices held that a federal court could not exercise specific
Since the COVID-19 pandemic began, thousands of pandemic-related lawsuits, including hundreds of putative class or collective actions, have been filed — and the number continues to grow. A large percentage of those lawsuits involve wage and hour claims, centered around issues including, but not limited to, failure to pay for
On June 6, 2022, the Supreme Court of the United States declined to hear petitions seeking review of whether federal courts may exercise personal jurisdiction over claims of nonresident plaintiffs who join Fair Labor Standards Act (FLSA) collective actions when their claims are not connected to the defendant’s activities in
In its 2017 decision in Bristol-Myers Squibb Co. v. Superior Court of Cal., the U.S. Supreme Court held that a state court could not exercise specific personal jurisdiction over nonresident plaintiffs’ claims against a nonresident company.
Recently, and for the first time in more than 20 years, the United States Court of Appeals for the First Circuit ruled on the transportation worker exemption contained in Section 1 of the Federal Arbitration Act (FAA). In Waithaka v. Amazon.com, Inc., 966 F.3d 10 (1st Cir. 2020), the court
Salvador SimaoOn Christmas Eve, the Third Circuit issued a decision restricting certification of wage/hour classes for off-the-clock cases and increasing the threshold
In many suits filed as collective actions under the Fair Labor Standards Act (FLSA), individuals hoping to join the action as opt-in plaintiffs submit consents to join the lawsuit even before the named plaintiff moves for conditional certification of the collective. Companies and courts are often unsure how to treat these “putative opt-in” participants before the court certifies any collective action: Are they subject to discovery? If the matter is settled, must they be included? If summary judgment is granted on the named plaintiff’s claims, what happens to the claims of the putative opt-ins? Are they dismissed? With or without prejudice?