Unpaid Overtime Class Action

News & Analysis as of

Wage-Hour Audits: Lessons Learned From Chipotle’s Heartburn

Beloved burrito-maker Chipotle Mexican Grill has found itself in a situation messier than the finger foods that brought the company more than $4 billion in revenue last year. A magistrate judge in Scott v. Chipotle Mexican...more

Avon Calling: Employees Allege Overtime Exemption Misclassification

Avon categorizes all of its district service managers (DSMs) under the “administrative” exception of California law that requires employers to pay overtime wages. DSMs are the Avon employees who recruit and train the...more

Trial Court Should Have Certified Class Claims Of Managerial Employees

Roberto Martinez and three other current or former employees of Joe’s Crab Shack (“JCS”) filed this putative class action asserting that they and similarly situated salaried managerial employees had been misclassified as...more

Ninth Circuit Issues Companion Cases Addressing Evidence Required To Show That The Amount In Controversy Requirement Has Been Met...

Through a pair of opinions issued the same day, the Ninth Circuit attempted to clarify the evidence required for a defendant to meet its burden of showing that the amount in controversy exceeds CAFA’s $5 million threshold...more

Fifth Circuit upholds “seamen” exemption and dismisses “day-rate” FLSA collective action suit.

A wave of FLSA collective (class) actions have been filed against scores of marine shipping and towing companies in the Gulf States for violation of the FLSA. Specifically, these suits claim that the commonly used “day-rate”...more

California District Court Finds that CAFA’s Amount-in-Controversy Requirement was Satisfied; Denies Motion to Remand

The U.S. District Court for the Northern District of California denied plaintiff’s motion to remand, holding that plaintiff’s claim for unpaid wages and overtime satisfied CAFA’s amount-in-controversy requirement. ...more

Who Decides the Issue of Class Arbitration?

Two districts of the California Court of Appeal recently issued significant decisions on arbitration agreements. In a published case, the Fourth Appellate District of the California Court of Appeal held that if the...more

Ninth Circuit Rules That Twombly Standard of Specificity Applies to FLSA Pleadings

On November 12, 2014, in Greg Landers v. Quality Communications Inc., the Ninth Circuit clarified a previously unsettled point of law by confirming that Fair Labor Standards Act (FLSA) pleadings must meet the specificity...more

Employer Prevails on Misclassification Claim Where Employee Fails to Prove Hours Worked

Greg Holaway worked as a Field Service Engineer for Stratasys, Inc. He was categorized as exempt from the provisions of the Fair Labor Standards Act (FLSA) requiring the payment of overtime. Even though his title was...more

Magistrate Permits Defendants to Depose 196 Absent Class Members

In a class action involving claims of uncompensated, pre-shift off-the-clock work, a California federal magistrate denied plaintiffs’ motion for a protective order to prevent defendants from taking 196 depositions of absent...more

Court of Appeal Denies Certification in Another Misclassification Overtime Class Action

In the latest installment in a series of recent employment class actions, the Court of Appeal for Ontario has dismissed an appeal by class action plaintiffs in Brown v Canadian Imperial Bank of Commerce. The decision...more

Is Your Arbitration Agreement Still Enforceable in Missouri After Baker v. Bristol Care, Inc.?

This summer, the Missouri Supreme Court issued a decision that will affect arbitration agreements relied on by employers across the state. The decision—one of many in a recent trend of Missouri cases restricting the...more

Lawful Shmawful: Ninth Circuit Ignores Lawful Written Policy and Uses Statistical Sampling to Certify Class Based on Alleged...

On September 3, 2014, the U.S. Court of Appeals for the Ninth Circuit upheld certification of a class of approximately 800 nonexempt insurance claims adjusters who claimed they worked overtime without compensation despite the...more

Ninth Circuit Approves Statistical Sampling And Affirms Certification Of Overtime Class

The Ninth Circuit recently affirmed certification of a class of an estimated 800 current and former California-based Allstate Insurance Company adjusters who allege that Allstate has a practice or unofficial policy of...more

Minnesota District Court Rejects Nationwide Scope and Conditionally Certifies Class of One Chipotle Store

Employees win most motions for conditional certification under the FLSA, with many courts declining to perform a probing analysis at that stage. A recent case from the District of Minnesota, in which the court still applied a...more

Washington Supreme Court Decision May Spur Joint Employer Class Actions

In a matter of first impression, the Washington Supreme Court has held that the "joint employer doctrine" is a viable theory under Washington's Minimum Wage Act (WMWA), and adopted the Fair Labor Standards Act's economic...more

FLSA Collective Action Waivers In Separation Agreements May Not Be Valid In 6th Circuit

Employees discharged as part of a company restructuring can participate in a collective action lawsuit for unpaid overtime wages under the Fair Labor Standards Act (FLSA) despite waiving their collective action rights in...more

Arizona District Court Rejects Joint Employer Arguments in Independent Contractor Case Alleging Misclassification of Truck Drivers

A month ago we discussed the Ninth Circuit’s decision in Ruiz v. Affinity Logistics Corp., Case No. 12-56589 (9th Cir. June 16, 2014), in which the employer treated its delivery drivers as employees in everything but name,...more

California Supreme Court Issues Favorable Decision for Employers in Duran v. U.S. Bank

The California Supreme Court has issued its long-awaited decision in Duran v. U.S. Bank. In a significant victory for employers, the Court unanimously agreed to overturn a $15 million judgment in a wage and hour class action...more

Thinking about Hiring Interns? New Case Reminds Employers of Rules on Interns

Following similar decisions involving Hearst Corporation and Viacom, a federal judge in the Southern District of New York recently granted conditional certification of a potential nation-wide class of approximately 3,000...more

Rebuking “Trial by Formula,” Federal Court Decertifies Rule 23(b)(3) Class Action

In Stiller v. Costco Wholesale Corp., No. 3:09-cv-2473-GPC-BGS, Plaintiffs Eric Stiller and Joseph Moro alleged that Costco’s loss-prevention closing procedures effectively “forced” employees to work off-the clock without...more

Federal Court Dismisses Overtime Claims Brought by Contractor Employee Working in Kuwait

On April 28, 2014, a Massachusetts federal court granted dismissal of a proposed class action alleging that Raytheon violated Kuwaiti law by failing to pay overtime to employees working in Kuwait on federal defense contracts....more

California District Court Rejects Overtime Settlement Over $50,000 Incentive Awards

Large incentive awards continue to jeopardize class action settlements. We wrote on February 14 about recent cases in which Circuit Courts rejected settlements due to disproportionate incentive awards. A recent case from the...more

FLSA Class Action Case Against Dollar Tree Goes Forward

The Case - On March 7, 2014, Judge Raymond Jackson of the U.S. District Court for the Eastern District of Virginia denied Dollar Tree’s motion for de-certification of a Fair Labor Standards Act (FLSA) class action case...more

Fifth Circuit Delivers Crippling Blow to Controversial NLRB Class Action Waiver Theory

Arbitration is generally supposed to be faster, cheaper, and more predictable than litigation. Homebuilder D.R. Horton, like many other employers, certainly believed this when, in 2006, it began requiring employees to sign...more

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