Collective Actions

News & Analysis as of

Second Circuit Court of Appeals Adopts “Primary Beneficiary Test” and Provides Guidance on the Unpaid Intern Question

On July 2, 2015, the Second Circuit Court of Appeals issued significant pro-employer decisions in Glatt v. Fox Searchlight Pictures (Nos. 13-4478-cv, 13-4481-cv) (“Fox”) and Wang v. Hearst Corp. (No. 13-4480-cv) (“Hearst”)...more

“On-Demand” Litigation Heats Up This Summer

This blog recently reported on the first wave of lawsuits challenging the classification of independent contractors in the “on-demand” economy. The second wave has now arrived, as numerous tech companies have been hit with...more

A New Internship Standard The Second Circuits Seven Factor Test and What it Means for Your Company

On July 2, 2015, the Second Circuit Court of Appeals issued a decision regarding the employment status of unpaid interns that should prove helpful to employers. In Glatt v. Fox Searchlight Pictures, Inc., Nos. 13-4478 and...more

Second Circuit Rulings Provide Hope For Companies’ Use of Unpaid Interns

In Glatt v. Fox Searchlight Pictures, Inc., a federal district court in New York decided that Fox Searchlight Pictures, Inc. had violated federal and New York minimum wage laws by not paying interns who had worked on its film...more

Class Actions with Uninjured Class Members Face Congressional and U.S. Supreme Court Scrutiny

Circumscribing an individual’s power to subject companies to class and collective actions has been on the forefront of corporate litigation for several years, particularly in light of the growing trend of class action...more

Court Order Trumps Board

What happens when the NLRB says an arbitration agreement is illegal, but a court enforces the agreement anyway? Four plaintiffs recently found out. In Hobson et al. v. Murphy Oil USA, Inc., No. CV-10-S-1486-S (N. D. Ala. July...more

Perfecting the (European) Class Action

Last month, I got to experience what I consider a career highlight: I was invited to speak on “Perfecting the Class Action” at Middle Temple. The spiel I gave would be familiar to readers here (it was a basic description of...more

Worth the Fight: Conditional Certification of FLSA Collective Actions is Not Automatic

Conventional wisdom holds that courts reflexively grant motions for conditional certification in Fair Labor Standards Act (“FLSA”) collective actions. As a result, some employers do not even oppose these motions. They are...more

Supreme Court Will Address Use Of Statistical Sampling and Whether A Class Can Be Certified If It Contains Members Who Are Not...

Last week, the United States Supreme Court granted cert in Bouaphakeo v. Tyson Foods, Inc., a Fair Labor Standards Act (“FLSA”) case with potentially wide reaching implications in federal class actions. In Bouaphakeo,...more

Supreme Court Agrees to Review Another Donning/Doffing Case

The U.S. Supreme Court rejects the overwhelming majority of requests for review of lower court decisions. For some reason, the Court appears to have a soft spot for so-called “donning and doffing” cases. These cases involve...more

New York Federal Courts Increasingly Scrutinize Excessive Attorneys’ Fees in Wage and Hour Class and Collective Actions

In what is becoming oft-cited language, U.S. District Judge William H. Pauley III of the Southern District of New York recently stated regarding the Fair Labor Standards Act that, A law is only effective to the extent...more

Supreme Court Takes Aim at FLSA Class, Collective Actions

Last week, the Supreme Court granted a writ of certiorari to Tyson Foods in an appeal of a class and collective action filed under the FLSA and a similar Iowa state law. Hourly workers at Tyson’s Storm Lake, Iowa pork...more

Game Changer? The Supreme Court Agrees to Consider Standards for Certifying FLSA Collective Actions and State Law Class Actions

The U.S. Supreme Court agreed yesterday to hear an appeal challenging a nearly $6.0 million judgment in a collective and class action case against Tyson Foods, Inc. In Tyson Foods, Inc. v. Bouaphakeo, a wage and hour...more

Supreme Court Agrees to Hear Case Addressing Scope of Wage and Hour Class and Collective Actions

It’s hard enough to predict what the Supreme Court will do on a given case even after it has been briefed and oral argument has been heard. It’s even harder when all we have is the decision accepting certiorari, but this one...more

Supreme Court to Weigh in on Trial By Formula

Today, the U.S. Supreme Court agreed to hear an appeal challenging an almost $6 million judgment awarded in a class action case against Tyson Foods, Inc. See Bouaphakeo, et al. v. Tyson Foods, Inc., No, 12-3753 (8th Cir....more

Supreme Court to Revisit Class-Certification Standards in Tyson Foods, Inc. v. Bouaphakeo

Monday, the Supreme Court granted review in what may be a major decision on the standards for class certification, Tyson Foods, Inc. v. Bouaphakeo, No. 14-1146. Under Federal Rule of Civil Procedure 23, a court may not...more

NLRB Judge Finds Employment Contract’s Arbitration Clause Invalid Although No Explicit “Waiver” of Class Actions

Last week, a National Labor Relations Board (“NLRB”) Administrative Law Judge reiterated the agency’s position that employers who require the arbitration of grievances by employees on an individual basis violate the National...more

Court Puts the Brakes on Overtime for Drivers—No Interstate Trips? No Problem!

The Third Circuit put a screeching halt to the contention that drivers must actually cross state lines to be exempt from overtime under the Motor Carrier Act (“MCA”). In Resch v. Krapf’s Coaches, Inc., the court ruled that...more

Supreme Court Declines to Hear Severance Agreement FLSA Collective Action Waiver Case

The Supreme Court has declined to grant review of a Sixth Circuit decision that cast significant doubt on the effectiveness of an employee’s waiver of Fair Labor Standards Act (FLSA) collective action rights. Last summer, the...more

UK Consumer Rights Act 2015

The Consumer Rights Act (“the 2015 Act”) received Royal Assent on 26 March 2015 and comes into force 1 October 2015. The 2015 Act aims to reform and consolidate eight pieces of legislation addressing consumer rights in the...more

Sixth Circuit Decision Refusing to Enforce Collective Action Waiver Included in Separation Agreement Remains Intact; Supreme Court...

This week, the Supreme Court disappointed many employers by declining to determine whether the Fair Labor Standards Act does or does not provide employees with a non-waivable substantive right to bring a collective action. ...more

2015 Employment Law Issues Tournament: The Championship (and the First-Ever Rendition of One Shining Lawsuit)

Sixty-four employment law issues have become just two after an exciting Final Four. Last night, while Wisconsin and Duke played each other in the NCAA championship, the Wage and Hour Collective Actions and the Retaliation...more

Circuit Courts Address Impact of Arbitration Agreements on Labor Class and Collective Actions

In Conners v. Gusano’s Chicago Style Pizzeria, plaintiffs, former employees of defendant, brought a collective action alleging violations of the Fair Labor Standards Act. Defendant responded by implementing a binding...more

Eighth Circuit Finds Former Employees Lack Standing To Challenge Employer’s New Arbitration Policy

What’s one way to derail a potentially large collective action about Fair Labor Standards Act violations? To implement a new arbitration policy within days, thereby ensuring that your current employees cannot join the court...more

Workplace Challenges in 2015, Part 4 of 5: Monitoring Wage and Hour Compliance Remains Paramount for Employers Seeking to Avoid...

Recently, Mintz Levin held a seminar in New York City that addressed some of the major challenges employers are facing in the New Year. Our program contained segments on New York City’s paid sick leave law, effective...more

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