Collective Actions

News & Analysis as of

Seventh Circuit Finds Class Action Waivers Unlawful

On May 26, 2016, the U.S. Court of Appeals for the Seventh Circuit in Lewis v. Epic Systems Corporation, held that when an employer conditions continued employment upon the signing of a class or collective action waiver in an...more

Class and Collective Action Waivers Lawful under NLRA, Eighth Circuit Finds, Contrary to Seventh Circuit

The National Labor Relations Board erred in determining that a company violated the National Labor Relations Act by maintaining and enforcing a mandatory arbitration agreement which prohibited employees from bringing or...more

Seventh Circuit Holds Class Action Waivers are Unlawful and Unenforceable Creating a Circuit Split

On May 26, 2016, in the matter of Lewis v. Epic Systems Corporation, the U.S. Court of Appeals for the Seventh Circuit held that an arbitration agreement, which required employees to submit to individual arbitration for any...more

Seventh Circuit Bucks the Trend, Holding That Class and Collective Action Waivers in Employee Arbitration Agreements Violate the...

In Lewis v. Epic Systems Corp., No. 15-2997 (7th Cir. May 26, 2016) (slip op.), the Seventh Circuit held that class and collective action waivers in arbitration agreements are not enforceable because they violate the National...more

Oilfield Service Companies Face Daunting Challenges

A focus on oilfield services companies’ decades old compensation plans for their service technicians began shortly after President Obama took office in 2009. The U.S. Department of Labor (DOL) commenced a more concentrated...more

Circuit Courts Weigh Employee Arbitration Waiver Agreements with Divergent Results

Conflicting decisions issued within one week of each other from the U.S. Courts of Appeals for the Seventh and Eighth Circuits exemplify the ongoing debate in circuit courts across the country about the enforceability of...more

Eighth Circuit Stays the Course in the Cellular Sales of Missouri Opinion, Rejecting the NLRB’s Arguments Against Class Waivers

Following in the wake of an earlier opinion, the Eighth Circuit rebutted the National Labor Relations Board’s (“Board”) arguments that by requiring employees to enter into arbitration agreements with a class and collective...more

Seventh Circuit Finds Unlawful Mandatory Employment Arbitration Agreements with Class Action Waivers

The Seventh Circuit recently ruled that employment arbitration agreements containing class waivers are unlawful under the National Labor Relations Act. In doing so, the Seventh Circuit has created a circuit court split on...more

Seventh Circuit Holds That Mandatory Arbitration With Class Waiver Violates NLRA, Setting up Circuit Split

On May 26, the U.S. Court of Appeals for the Seventh Circuit held that a wage-and-hour class arbitration clause violated the National Labor Relations Act (NLRA), setting up a circuit split with the Fifth Circuit, and opening...more

Circuit Split Develops Over The Enforceability Of Class Waivers In Employment Agreements

Affirming a district court’s denial of a motion to compel arbitration, the United States Court of Appeals for the Seventh Circuit has held unenforceable a provision of an employment agreement mandating that wage-and-hour...more

Summer Tee Time: 7th Circuit Rules Class Arbitration Waivers are Unenforceable, Sets Stage for U.S. Supreme Court to Decide Issue

Employment agreements containing arbitration clauses that restrict the rights of employees to initiate class arbitration, and instead confine them to seeking individual relief, have become more popular in the last decade, and...more

Seventh Circuit Creates Circuit Split on Arbitration Agreements that Prohibit Class or Collective Wage and Hour Claims

Recently, the Seventh Circuit Court of Appeals in Chicago held in Lewis v. Epic Systems Corporation that a mandatory agreement between the employer (Epic) and its employees requiring arbitration of wage and hour claims on an...more

Major Changes to Federal Overtime Regulations Take Effect December 1. Are You Prepared?

This week, President Obama and Secretary of Labor Thomas Perez announced the publication of a final rule to take effect December 1 that will overhaul the Fair Labor Standard Act’s overtime regulations. The U.S. Department of...more

Court Curtails Relief For Age Discrimination Collective Action Litigation

Seyfarth Synopsis: Relief sought in age discrimination litigation is limited to the specific remedies described in the Age Discrimination in Employment Act (“ADEA”). In a ruling on April 26, 2016, in K.H., et al., v....more

Some pre- and post-shift activity not compensable

In recent years, a number of collective action wage and hour disputes involving the donning and doffing of protective work clothing have made their way through the courts. And in many of those cases, the employers have been...more

Representative Evidence May Or May Not Be Sufficient

A recent U.S. Supreme Court case holding that representative evidence can be used in class/collective actions to the same extent that it could be used in an individual action may not have the broad application hoped for by...more

Collado v. J & G Transport, Inc. – When a Waived Right to Arbitrate is Revived

Some may have thought that once waived, the right to arbitrate is gone forever. No so! The Eleventh Circuit decision in Collado v. J & G Transport, Inc., No. 15-14635 (11th Cir. April 21, 2016) is but the latest example. In...more

Advising On Their Own: Financial Advisors’ Class Claims Defeated

Employers have a new tool for opposing conditional and class certification of overtime claims by financial advisors and other exempt employees—last week, a judge in the District of New Jersey denied conditional and class...more

Doing the “Two Step”: Court Denies Second Stage Certification of FLSA Claims

Plaintiffs’ counsel frequently speak of the “low” burden necessary at first stage for conditional certification under the FLSA. However, a recent decision from the Eastern District of New York highlights that plaintiffs may...more

A Troubling Decision for Employment Arbitration Agreements with Potentially Ambiguous Language and What it Means for Employers...

On April 5, 2016, in a rare rebuke of an employment arbitration agreement by a federal court, the United States District Court for the District of New Jersey (Hon. Madeline Cox Arleo, U.S.D.J.) held that it would not compel...more

Supreme Court Says Averages May be Used to Establish Classwide Liability

In its 2011 Dukes decision, the U.S. Supreme Court limited the circumstances under which groups of employees can maintain class action claims relating to their employment. In that case, the Court concluded that Wal-Mart...more

Tenth Circuit raises the stakes in (already) costly wage and hour litigation

Wage and hour cases, particularly collective and class actions, are among the most costly employment lawsuits for employers. When an employer arguably is mistaken in how it pays employees overtime, does not pay for hours...more

Sixth Circuit Says Residential Loan Underwriters Are Exempt From Overtime Requirements

Earlier this month, financial companies won a victory in the long-standing battle over whether employees involved in mortgage originations and approvals are exempt from the overtime requirements of the Fair Labor Standards...more

It's Time to Schedule a Wage and Hour Check-Up to Avoid Costly FLSA Lawsuits

It's time to schedule your check-up -- your wage and hour check-up -- designed to try to prevent your company from becoming a defendant in a costly wage and hour lawsuit. Every year more wage and hour lawsuits are filed...more

Launch of First UK Opt-Out Class Action

October 1, 2015, marked the entry into force of the Consumer Rights Act 2015 ("CRA"), bringing with it an opt-out class action regime for the private enforcement of infringements in competition law. Now, in March, 2016, the...more

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