An appeals court just raised the bar for employees seeking to notify other potential plaintiffs about collective wage and hour claims under federal law. Employees may bring such claims under the Fair Labor Standards Act on behalf of themselves and “similarly situated” workers — but they must meet certain criteria before a court will allow additional employees to be notified about the claims and give them an opportunity to opt into the lawsuit. Last week, the 6th Circuit Court of Appeals set a new standard, holding that an employee must show a “strong likelihood” that other employees are similarly situated. It rejected the “fairly lenient” two-step collective process used by many district courts – and also diverged from the 5th Circuit’s stricter standard. While the 6th Circuit’s ruling will impact employers in Kentucky, Michigan, Ohio, and Tennessee, employers in all locations should pay attention to developments in this area, particularly since SCOTUS may ultimately need to weigh in on the evidentiary standard. What are the four biggest takeaways for employers defending federal wage and hour claims?
1. Appeals Court Rejects 2-Step Process
In this case – Clark v. A&L Homecare and Training Center, LLC — a group of home health aides sued their former employer alleging they were paid improper rates for overtime premiums and vehicle expense reimbursement. They sought to bring their federal Fair Labor and Standards Act (FLSA) claims as a collective action on behalf of...
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