A decision issued recently by the U.S. Court of Appeals for the Third Circuit contains what might be good news for employers who are facing “hybrid” litigation involving collective actions under the Fair Labor Standards Act and class claims under state wage-hour laws.
In Lundeen v. 10 West Ferry Street Operations, a three-judge panel of the court held that a class settlement of state wage-hour claims could encompass FLSA claims as well, even those of absent class members who do not opt out. In what may be even more encouraging, the panel was relatively non-partisan, consisting of an Obama appointee, a Clinton appointee, and a George W. Bush appointee.
Opt-in/Opt-out
An employee seeking to challenge employer pay practices under the FLSA can file what is called a “collective action” on behalf of the employee and all those “similarly situated.” If a “similarly situated” employee wants to join in the lawsuit, he or she must affirmatively “opt in.” In other words, the employee has to agree in writing to join the collective action. If a “similarly situated” employee does nothing, then he or she will not be part of the FLSA collective action.
Class actions are handled in nearly the opposite way. If an employee wants to challenge employer pay practices under an applicable state wage-hour law, then he or she can file a “Rule 23 class action” (named for the federal rule of civil procedure that applies to class actions). In a Rule 23 class action, the individuals with related claims...
The Los Angeles County District Attorney's Office, led by Nathan Hochman, is investigating potentially fraudulent claims in two large sex abuse settlements approved by the L.A. County Board of Sup...