On May 27, 2022, inHinkle v. Phillips 66 Company,1the Fifth Circuit Court of Appeals issued the latest in a string of opinions on arbitrating Fair Labor Standards Act (FLSA) claims, and it is one that should grab the attention of any employer that uses contractors in its operations. As many companies know firsthand, a single FLSA class (collective) action can be costly-not just in defense costs but also in damages. Multi-state employers also face the daunting task of complying with varied (and at times arcane) state wage-and-hour laws that can impose additional penalties for violations. Given the potential for significant damages, businesses should not be surprised that claimants are testing new FLSA theories, including the one at issue inHinkle.
A. Recent Fifth Circuit Cases: Newman I,Newman II, andHinkle
In several related opinions from the Fifth Circuit Court of Appeals,Newman I,2Newman II,3and most recentlyHinkle, a pipeline-inspection firm hired some inspectors and required them to sign arbitration agreements. The firm sent the inspectors to work for client companies. The inspectors then sued theclient companiesfor FLSA violations-and did not include the inspection firm. InNewman I, the client company sought to compel arbitration under the agreement between the inspection firm and inspectors, and inNewman IIandHinklethe pipeline-inspection firm intervened and moved to compel arbitration. However, in each case, the court denied the request to compel arbitration. The...
The new host of Strictly It Takes Two has hit back at a fan’s claim that she ‘ruins TV shows’ and the BBC hasn’t ‘got a clue’. Last week it was revealed that comedian Ellie Taylor will be taking o...