Takeaways

• The Seventh Circuit will not rehear the case that led to its 2024 decision that the U.S. Supreme Court’s Bristol-Myers decision and its jurisdictional principles apply to FLSA collective actions.
• A solid majority of circuits to address the issue have held that Bristol-Myers applies in the FLSA context.
• As a result, employers will be less vulnerable to nationwide collective actions in a jurisdiction where they are not headquartered or do not have their principal place of business.

Related links

• Another Circuit Rules Bristol-Myers Applies to FLSA Collective Actions, Bars Out-of-State Opt-Ins
• Bristol-Myers Decision Applies to Plaintiffs in FLSA Collective Actions, Third Circuit Holds
• Appeals Court Creates Circuit Split on Whether Bristol-Myers Applies to Collective Actions
• It’s been a busy month for Bristol-Myers

Article

In its 2024 opinion in Vanegas v. Signet Builders, Inc., the U.S. Court of Appeals for the Seventh Circuit joined a growing number of federal circuits to hold that would-be plaintiffs from out of state cannot join a collective action brought under the Fair Labor Standards Act (FLSA) unless the court has general jurisdiction over the employer. Vanegas v. Signet Builders, Inc., 2024 U.S. App. LEXIS 20780 (7th Cir. Aug. 16, 2024). With the decision, Illinois, Indiana, and Wisconsin were added to the list of jurisdictions where employers may not be subjected to nationwide collective actions of federal wage and hour, equal pay, or age...

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