The terms "class," "collective" and "representative" actions sometimes are bandied about as though they were the same thing, but they have distinct meanings that employers benefit from understanding. This article, the second in a series, examines the differences among these types of lawsuits and practical ramifications, such as how an employer might seek early resolution, as well as how certification of a class or collective action affects whether an employer's attorney may speak with plaintiffs.
The class-action process is the one typically used when employees bring claims for alleged violations of state laws, said Mike Kun, an attorney with Epstein Becker Green in Los Angeles.
Collective actions exist only under the Fair Labor Standards Act (FLSA) and the Age Discrimination in Employment Act, said Zachary Busey, an attorney with Baker Donelson in Memphis, Tenn.
A representative action refers to claims like those under California's Private Attorneys General Act (PAGA), Kun said. PAGA lets an employee stand in the shoes of the attorney general and represent all other employees in litigation, he explained.
Class Action
If a court certifies a class, a notice will go out to the class members. "A class member will remain a part of the class unless they opt out," said Mark Wallin, an attorney with Barnes & Thornburg in Chicago.
There is a heavy burden on the plaintiffs to establish that a class should be certified, Kun said.
"If the employer can succeed in defeating the...
Schubert Jonckheer & Kolbe LLP advises Aquestive Therapeutics, Inc. (Nasdaq: AQST) investors that the firm is investigating potential legal claims arising from alleged false and misleading sta...