If you know what a class action lawsuit is, you’re already halfway to understanding the concept of a collective action. Though class and collective actions are both representative in nature—that is, both generally seek to represent groups of people who have allegedly suffered a similar harm—there are a few important differences between the two.
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A collective action, most commonly used to deal with wage and hour and other employment issues, is a type of lawsuit that employees may file against an employer who has allegedly violated their rights under the Fair Labor Standards Act (FLSA), Equal Pay Act (EPA) or Age Discrimination in Employment Act (ADEA). These employment-related federal laws—which protect certain workers’ rights to minimum wage, overtime, meal breaks and tips and aim to prevent discrimination—do not allow employees to bring claims against their employer through a class action. Instead, workers who believe their rights under these statutes have been violated must file a collective action that other employees can join.
In a collective action, a plaintiff, or multiple plaintiffs, band together and file one lawsuit on behalf of a group of employees who they claim are “similarly situated”—that is, who have similar claims of wrongdoing or were similarly harmed by their employer. Even if employees work in different...
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