News & Analysis as of

Arbitration Fair Labor Standards Act (FLSA) Collective Actions

Arbitration is a widely-used method for settling disputes between parties. During arbitration, parties submit their dispute to an impartial third person or party, usually chosen by the parties. Typically, parties... more +
Arbitration is a widely-used method for settling disputes between parties. During arbitration, parties submit their dispute to an impartial third person or party, usually chosen by the parties. Typically, parties to arbitration agree in advance to be bound by the arbitrator's decision. Arbitration is an alternative to litigation, but it shares many of the familiar features of litigation. Namely, parties to arbitration hold hearings before neutral decision-makers, present evidence and argue the merits of their position. Parties often choose arbitration due to its perceived advantages over litigation. Those perceived advantages include greater efficiency and flexibility, and lower costs. less -
Carlton Fields

Alabama Federal Court Seals and Approves FLSA Settlement Agreement, Addresses Confidentiality Provision

Carlton Fields on

The plaintiff was employed by defendant Pilot Catastrophe Services Inc. as an insurance claims adjuster, where she was responsible for inspecting property damage claims and providing damage estimates to insurance companies....more

Manatt, Phelps & Phillips, LLP

Restrictions on Employer Communication Upheld by Ninth Circuit

In an appeal presenting recurring issues facing district courts in managing whether and how prospective parties are brought into wage and hour lawsuits under the collective action procedures of the Fair Labor Standards Act...more

Proskauer - California Employment Law

January 2024 California Employment Law Notes

A Single Incident Of Harassing Conduct May Create A Hostile Work Environment - Beltran v. Hard Rock Hotel Licensing, Inc., 97 Cal. App. 5th 865 (2023) - Stephanie Beltran, a server at the Hard Rock Hotel in Palm...more

Obermayer Rebmann Maxwell & Hippel LLP

Waiving Goodbye: Supreme Court Says Prejudice No Longer Required to Establish Employer Waived Right to Arbitrate Employee’s Claims

Employers sometimes favor resolving disputes with their employees in arbitration as opposed to in front of a jury. Such a private tribunal may streamline discovery procedures, offer a quicker resolution, and, theoretically,...more

BakerHostetler

Supreme Court Holds Prejudice Not Required for Waiver of Right to Arbitrate - But Does Little Else

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In a much-anticipated opinion, the Supreme Court unanimously held that a party claiming waiver of the right to arbitrate need not show prejudice, in Morgan v. Sundance, Inc., Case No. 21-328 (May 23, 2022). While the holding...more

Jackson Lewis P.C.

U.S. Supreme Court Holds Waiver of Arbitration Rights Does Not Require Showing of Prejudice

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A party is not required to show prejudice to establish that an opposing party has waived its right to arbitrate by litigating in court, the U.S. Supreme Court has held in a unanimous decision....more

Perkins Coie

Panel Upends the Rules of FLSA Collective Actions in the Fifth Circuit

Perkins Coie on

In an unexpected shift, the U.S. Court of Appeals for the Fifth Circuit in Swales v. KLLM Transport Services, LLC, ordered courts to abandon the commonly followed “two-step” certification process for collective actions under...more

Genova Burns LLC

When Facing a Class Action Law Suit - Don't Initiate; Just Arbitrate

Genova Burns LLC on

On Monday, a New Jersey federal judge ruled that 151 plaintiffs in a FLSA collective action against Francesca’s must arbitrate its wage and hour claims. Notably, the arbitration agreements were signed at varying points in...more

Proskauer - Law and the Workplace

5th Circuit: Arbitration Available for Employee’s Collective Action Claims

On April 16, 2020, the Fifth Circuit held that an employee is entitled to arbitrate his federal labor law claims as a collective action on behalf of his coworkers against their employer, Sun Coast Resources, Inc. (“Sun...more

Foley & Lardner LLP

Appeals Court Says No FLSA Notice for Employees Who Agree to Arbitrate

Foley & Lardner LLP on

On January 24, 2020, the U.S. Court of Appeals for the Seventh Circuit announced a new standard by which a district court should evaluate whether notice of an FLSA collective action should be sent to employees who may be...more

Laner Muchin, Ltd.

Recent Appellate Court Decision Explains How Arbitration Agreements May Mitigate The Impact Of Class Actions On Employers

Laner Muchin, Ltd. on

Valid arbitration agreements may prevent class notices from being sent to employees that would otherwise be putative class members in collective action lawsuits according to the Seventh Circuit Court of Appeals in Bigger v....more

Littler

The Seventh Circuit Rules on Whether to Send Notice in FLSA Collective Actions to Individuals with Arbitration Agreements

Littler on

On January 24, 2020, the Seventh Circuit Court of Appeals became the second federal appellate court to address whether notice of a collective action under the Fair Labor Standards Act (FLSA) may be sent to individuals who...more

Hinshaw & Culbertson LLP

New Statutory Framework Mandated for Employers Seeking to Limit Notice to Putative Class Members in an Enforceable Arbitration...

The United States Court of Appeals for the Seventh Circuit recently articulated a new statutory framework for determining whether notice to a putative plaintiff should be issued under the Fair Labor Standards Act (FLSA). At...more

Morgan Lewis

Seventh Circuit: No FLSA Collective Action Notice For Workers Subject To Individual Arbitration Agreements

Morgan Lewis on

In Bigger v. Facebook, Inc., the US Court of Appeals for the Seventh Circuit held that courts should not authorize notice of a pending Fair Labor Standards Act (FLSA) collective action to individuals who have already entered...more

Seyfarth Shaw LLP

Invitations (To Join FLSA Collective Actions) Have Consequences: Seventh Circuit Rules That FLSA Opt-In Notice Should Not Be Sent...

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Seyfarth Synopsis: An appellate court has ruled that a district court should not authorize notice of an FLSA suit to employees who are ineligible to join the suit because they agreed to resolve disputes exclusively through...more

BakerHostetler

Seventh Circuit Now Addresses When Notices of Collective Action Can be Given to Employees Who May Have Arbitration Agreements...

BakerHostetler on

Whether to give notices of a collective action under the Fair Labor Standards Act (FLSA) to employees who may join presents some nuanced and challenging questions for district courts. The court must “respect judicial...more

Buckingham, Doolittle & Burroughs, LLC

Minimum Wage and Overtime Law: The Most Overlooked Employment Issue of the 21st Century

The Fair Labor Standards Act regulates minimum wage and overtime due to employees. It was passed in the 1930s. It was largely forgotten until the late 1990s, when some entrepreneurial plaintiffs’ lawyers rediscovered the FLSA...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

NLRB Clarifies Use of Mandatory Arbitration Post-Epic Systems

On August 14, 2019, the National Labor Relations Board (NLRB) issued a ruling clarifying several mandatory arbitration issues following the 2018 decision by the Supreme Court of the United States in Epic Systems Corp. v....more

Franczek P.C.

NLRB Clarifies Employer Right to Require Mandatory Arbitration Agreements Following Supreme Court’s Epic Systems Decision

Franczek P.C. on

In a significant decision for employers, the National Labor Relations Board (NLRB) provided new guidance addressing the intersection of arbitration agreements and the National Labor Relations Act (NLRA). The NLRB’s recent...more

Foley & Lardner LLP

NLRB Holds That Employers May Modify Arbitration Agreements, Threaten Workers to Sign After Commencement of Class Action Lawsuit

Foley & Lardner LLP on

As we have previously written, the issue of employment arbitration agreements and their effect on class action matters has been an area of significant evolution over the years. Last week, on August 21, 2019, the National...more

Ballard Spahr LLP

NLRB: Employers Can Revamp Arbitration Agreements in Response to Collective or Class Action Suits

Ballard Spahr LLP on

The Supreme Court held last year in Epic Systems v. Lewis that mandatory arbitration agreements requiring employees to arbitrate claims against their employer on an individual—rather than on a class or collective—basis are...more

Carlton Fields

Fifth Circuit Bars Notice of FLSA Collective Actions to Arbitration-Bound Employees

Carlton Fields on

The Fifth Circuit recently became the first federal court of appeals to hold that employees who signed arbitration agreements should not receive notice of collective actions. This case of first impression among the courts of...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Fifth Circuit Rules No Notice of Collective Actions for Employees With Arbitration Agreements

The U.S. Court of Appeals for the Fifth Circuit Court recently issued an opinion with major implications in In re: JPMorgan Chase & Company that impacts collective actions under the Fair Labor Standards Act (FLSA). On...more

Littler

Fifth Circuit Holds District Courts in FLSA Actions May Not Send Notice to Employees with Valid Arbitration Agreements that...

Littler on

In one of the most significant Fair Labor Standards Act (FLSA) appellate decisions in recent years, on February 21, 2019, a three-judge panel on the Fifth Circuit Court of Appeals unanimously held that “district courts may...more

Mintz - Arbitration, Mediation, ADR...

Fair Labor Standards Act Collective Action Provision Too Does Not Make Agreement to Mandatory Bilateral Arbitration Unenforceable

When the Supreme Court ruled recently that the “concerted activities” provision of the National Labor Relations Act (“NLRA”) did not make a contractual waiver of “class arbitration” unenforceable, it provided an extensive...more

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