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Another Circuit Rules Bristol-Myers Applies to FLSA Collective Actions, Bars Out-of-State Opt-Ins

The U.S. Court of Appeals for the Seventh Circuit joins a growing number of federal circuits to hold the U.S. Supreme Court’s 2017 decision in Bristol-Myers Squibb v. Superior Court, that sharply limited the use of nationwide...more

Fifth Circuit Strikes Down DOL Tip Credit Rule: What It Means for Employers

In a long-awaited decision, the Department of Labor (DOL) regulation setting strict limits on the amount of time that tipped employees can spend performing work that does not directly generate tips has been struck down by the...more

Seventh Circuit: Employer May Place Conditions on Paying for Non-Compensable Off-the-Clock Work

If an employer adopts a contract or custom of paying employees for pre- or post-shift activities that are not otherwise compensable under the Fair Labor Standards Act (FLSA), it can impose conditions on such pay, including...more

What Is Earned Wage Access for Employees?

Earned wage access (EWA) is a term often heard among employers in the retail and hospitality industries. EWA may be referred to as instant pay, earned income, early wage access, accrued wage access, or on-demand pay. In the...more

Third Circuit Offers Guidance on When Donning and Doffing Safety Gear Is Compensable

A federal district court applied the wrong legal test when it held on summary judgment that oil rig workers were not entitled to compensation under the Fair Labor Standards Act (FLSA) for the time they spent changing into and...more

U.S. Supreme Court Rules on Narrow Jurisdictional Question in Fractured Opinion

In a 5-4 decision, the U.S. Supreme Court has upheld Pennsylvania’s “registration statute,” which requires corporations that register to do business in Pennsylvania to consent to the “general personal jurisdiction” of...more

Sixth Circuit Adopts New Standard to Decide Whether to Send Notice to Potential FLSA Opt-Ins

In a highly anticipated decision, the U.S. Court of Appeals for the Sixth Circuit has ruled it will not use the lenient, two-step procedure in deciding whether to authorize sending notice of a collective action to other...more

Chipping Away at Two-Step Conditional Certification in FLSA Collective Actions

A federal district court located within the jurisdiction of the U.S. Court of Appeals for the Fourth Circuit has adopted the heightened standard for certification of a collective action under the Fair Labor Standards Act...more

U.S. Supreme Court Declines to Consider Whether Bristol-Myers Applies to Collective Actions

The U.S. Supreme Court has declined to settle the circuit split on whether its 2017 decision in Bristol-Myers Squibb Co. v. Superior Court of Cal. applies to collective actions brought under the Fair Labor Standards Act...more

Class Action Trends Report Winter 2023

In this issue of the Jackson Lewis Class Action Trends Report, we welcome the New Year and look back at the most significant developments affecting employment class and collective action litigation in 2022. We also look ahead...more

Has Lynn’s Food Grown Stale? Courts Increasingly Question Obligation to Review FLSA Settlements

For 40 years, the majority of federal courts have followed the holding of Lynn’s Food Stores, Inc. v. U.S., 679 F.2d 1350 (11th Cir. 1982), that FLSA claims may be settled only through approval by the U.S. Department of Labor...more

Cable Technicians Were Exempt Commissioned Employees, Fifth Circuit Concludes

Although the plaintiff cable technicians, who were paid by the completed job and not by the hour, were covered employees under the Fair Labor Standards Act (FLSA), they nonetheless were bona fide commissioned employees and...more

Bristol-Myers Decision Applies to Plaintiffs in FLSA Collective Actions, Third Circuit Holds

Since the U.S. Supreme Court’s 2017 decision in Bristol-Myers Squibb Co. v. Superior Court of Cal., 137 S. Ct. 1773, limiting the scope of a court’s jurisdiction over out-of-state claims, federal courts have grappled with...more

FAA’s Transportation Worker Exception Covers Airline Ramp Agents, U.S. Supreme Court Holds

Individuals employed as ramp workers who frequently handle cargo for an airline are “transportation workers” exempt from the Federal Arbitration Act (FAA), the U.S. Supreme Court has held. Southwest Airlines Co. v. Saxon, No....more

Supreme Court to Review Fifth Circuit’s Oil Rig “Day Rate” Case

In April 2020, a three-judge panel of the U.S. Court of Appeals for the Fifth Circuit held that paying an employee a set amount for each day that he works (i.e., on a “day rate” basis) does not satisfy the “salary basis”...more

North Carolina Federal Court Holds It Lacks Jurisdiction Over Claims Of Out-Of-State Opt-Ins

In the latest court ruling to address personal jurisdiction over out-of-state opt-in plaintiffs in Fair Labor Standards Act collective actions, a federal district court in North Carolina held that it lacked jurisdiction over...more

Fourth Circuit Explains How Burdens Should be Allocated for Objections to Class Settlement

Explaining for the first time “who bears what burdens when a class member objects to a proposed settlement,” the U.S. Court of Appeals for the Fourth Circuit affirmed in an insurance case a district court’s order approving a...more

Supreme Court Considers Scope of FAA’s Transportation Worker Exemption

Do an airline’s ramp workers qualify as “transportation workers” exempt from the Federal Arbitration Act (FAA)? This question is pending before the U.S. Supreme Court in Southwest Airlines Co. v. Saxon (No. 21-309), a...more

Ninth Circuit Affirms State Court’s Authority to Approve Class Action Settlements

Absent class members in state-court class actions cannot pursue individual claims in federal court when the class has entered into a settlement releasing all such claims and a state court has entered final judgment approving...more

Restaurant’s Mandatory Service Charge Was Not a Tip and May Satisfy FLSA Wage Requirements, Eleventh Circuit Holds

A Miami restaurant’s mandatory 18% service charge did not constitute a “tip” under the Fair Labor Standards Act (FLSA) and therefore was properly applied toward satisfying the FLSA’s employee wage requirements, the U.S. Court...more

Appeals Court Creates Circuit Split on Whether Bristol-Myers Applies to Collective Actions

In its 2017 decision in Bristol-Myers Squibb Co. v. Superior Court of Cal., the U.S. Supreme Court held that a state court could not exercise specific personal jurisdiction over nonresident plaintiffs’ claims against a...more

Build Back Better Act Update: Class Waiver Provisions Gone, Penalty Increases Remain

The Senate Committee on Health, Education, Labor, and Pensions has released its version of the Build Back Better bill and it does not contain the provision regarding class or collective action waivers in the version passed by...more

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