News & Analysis as of

Fair Labor Standards Act (FLSA) Class Action Arbitration Waivers Collective Actions

BakerHostetler

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

BakerHostetler on

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

BakerHostetler

Spending Bill Would Place Class Action Waivers in Jeopardy

BakerHostetler on

Only three years ago, the Supreme Court reversed the holdings of a large number of lower courts and held that class action waivers in arbitration agreements were enforceable. Epic Systems Corp. v. Lewis, 138 S. Ct. 1612...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...

Seyfarth Shaw LLP on

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

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

Bradley Arant Boult Cummings LLP

New Waive? NLRB Allows Revised Arbitration Agreements After Collective Action

Last week, the National Labor Relations Board (NLRB) issued a decision in Cordúa Restaurants, Inc., that permits employers to create and enforce arbitration agreements with collective waivers in direct response to Fair Labor...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

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

Ballard Spahr LLP

Sixth Circuit Continues To Expand Class Action Waivers, Following Supreme Court's Lead

Ballard Spahr LLP on

The U.S. Supreme Court's ruling in Epic Systems Corp. v. Lewis was extended by the U.S. Court of Appeals for the Sixth Circuit last week in Gaffers v. Kelly Services, Inc. ...more

Carlton Fields

Eleventh Circuit Reverses NLRB Order, Enforcing Individualized Arbitration Clause In Employee Agreement

Carlton Fields on

A pizza delivery driver employed by Domino’s Pizza franchisee Cowabunga Inc. filed a collective action under the Fair Labor Standards Act with the National Labor Relations Board. ...more

McAfee & Taft

US Supreme Court upholds arbitration agreements with class action waivers

McAfee & Taft on

On Monday, Justice Gorsuch for the United States Supreme Court issued an opinion in Epic Systems Corp v. Lewis, together with two companion cases, upholding the use of class and collective action waivers in arbitration...more

Faegre Drinker Biddle & Reath LLP

Supreme Court Upholds FLSA Collective Action Waivers in Arbitration Agreements

On May 21, 2018, the U.S. Supreme Court held that employees can waive their right to participate in a collective action under the Fair Labor Standards Act (FLSA). This is a major victory for employers seeking to limit...more

Fox Rothschild LLP

Arbitration Provision In Handbook Withstands Judicial Scrutiny In Dismissing FLSA Collective Action: Another Magic Bullet!

Fox Rothschild LLP on

There has been a great deal of litigation about class action waivers in Employee Handbooks and use of arbitration mechanisms in Employee Handbooks to preclude judicial litigation. A recent New Jersey federal case sheds more...more

Poyner Spruill LLP

What to Watch - Supreme Court to Consider Whether Agreements to Waive Employees' Class or Collective Action Rights are Enforceable

Poyner Spruill LLP on

In recent years, employers have increasingly been subject to class and collective actions lawsuits by employees alleging various employment law violations, including claims under the Fair Labor Standards Act. In response,...more

McNees Wallace & Nurick LLC

The Other Shoe Drops (sort of): The Third Circuit Issues a Ruling on Class Arbitrability

In 2010, two employees filed a claim against their former employer, Robert Half International, Inc., alleging that it violated the Fair Labor Standards Act (“FLSA”). In addition to individual claims, the plaintiffs brought a...more

Allen Matkins

Ninth Circuit Strikes Down Class Action Waivers In Employment Arbitration Agreements

Allen Matkins on

On August 22, 2016, the U.S. Court of Appeals for the 9th Circuit (which covers California) struck down a "concerted action waiver" (i.e., a waiver of class, collective or other group actions) in an arbitration agreement....more

Bradley Arant Boult Cummings LLP

West Coast—Time to Check Your Employment Agreements: Ninth Circuit Negates No-Class Action Clause in Arbitration Agreements

This week, the Ninth Circuit held that Ernst & Young’s (E&Y) arbitration agreement that prohibited its employees from filing class actions violates the National Labor Relations Act (NLRA). E&Y required as a condition of...more

Seyfarth Shaw LLP

And Now There Are Two: The Ninth Circuit Strikes Class Arbitration Waivers Joining the Seventh Circuit on Finding that these...

Seyfarth Shaw LLP on

Seyfarth Synopsis: The Ninth Circuit joined the Seventh Circuit and the NLRB in finding that mandatory arbitration agreements that require all claims to be brought by employees on an individual basis violate the NLRA. On...more

Sherman & Howard L.L.C.

Ninth Circuit Strikes Class Arb Waivers

The Ninth Circuit Court of Appeals weighed in, today, on the propriety of class action arbitration waivers under the NLRA. The Court held that such waivers violate Sections 7 and 8 of the NLRA in the context of a pending...more

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