In a published, precedential case of first impression, the U.S. Court of Appeals for the Third Circuit clarified a significant question at the intersection of the Fair Labor Standards Act (FLSA) and class-action procedure under Federal Rule of Civil Procedure 23. The decision, Lundeen v. 10 West Ferry Street Operations (No. 24-3375), grappled with a matter of first impression: whether a named plaintiff in a class action may settle unasserted FLSA claims on behalf of prospective class members, even if those members have not “opted in” as required under 29 U.S.C. Section 216(b). In doing so, the Third Circuit answered the question affirmatively, that a properly scrutinized class settlement can waive prospective FLSA claims for prospective class members.
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