Alright, we all know in the wake of Italian Colors, Concepcion, and now many other cases that the presumption of arbitrability isn’t just a doctrine to recite in the manner of saying grace before invalidating an agreement, but is actually meant to be followed, even when it might ultimately thwart a class action. But can … Continue Reading
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 Central District of California reflects that lower courts are taking a close look at such awards and the relationship of the size … Continue Reading
Is there a statute with a better acronym than RICO? The Racketeer Influenced and Corrupt Organizations Act, apart from its great acronym, has been both a great success and a tool for misuse. We don’t often see RICO claims in the employment context, let alone employment class actions, and we can’t resist commenting on a … Continue Reading
What is the right compensation for a particular job? That’s the question virtually every employer must face. Pay too little, and the employer may not be able to fill a position or must settle for less than the best candidates. Pay too much, and the employer loses money and may create other problems, including the … Continue Reading
Crow Doesn’t Taste Too Bad….If You Season It Right. AT&T Mobility appears determined to make it onto the Christmas card list of every employer in the United States. In yet another big win for AT&T, the Ninth Circuit recently overturned its own case law and held that a defendant must establish CAFA’s $5 million jurisdictional amount simply by a preponderance of the … Continue Reading
One can only imagine the outcome the plaintiffs’ attorneys were anticipating: a case against the financial industry, involving non-exempt employees subject to an auto-deduct policy for meal periods, in the Southern District of New York. It seems like a laundry list of many types of claims that have been certified, and they no doubt expected … Continue Reading
You might want to grab a calculator, or at least some strong coffee, before reading this. If an employee or group of employees have been found to have been misclassified as exempt, are they entitled to time-and-a-half for overtime hours, or only the half-time premium? Years ago, the Supreme Court seemed to indicate that in … Continue Reading
A Virginia District Court has denied conditional certification of a class of chauffeurs in claims for unpaid overtime and has also recognized the application of Wal-Mart Stores, Inc. v. Dukes, 131 S. Ct. 2541 (2011), to the calculation of damages under the Fair Labor Standards Act. In Amir v. Sunny’s Executive Sedan Service, Inc., Civil … Continue Reading
We have blogged a number of cases in which courts have conditionally certified FLSA actions, only to later decertify them when the specter of trial begins to loom. While FLSA decertification cases often involve office or sales employees, as a federal court in Wisconsin recently demonstrated, efficiently resolving FLSA collective actions at trial can quickly … Continue Reading
Dorothy Gale famously remarked upon finding herself in Oz “Toto, I’ve got a feeling we’re not in Kansas anymore.” Class action wage and hour plaintiffs on the west coast are now awakening to the fact that while they may still be in California, California isn’t California any more. In May we noted the almost overnight … Continue Reading
Anyone who has dined at a restaurant is aware of the importance of tipping, even if the exact rules, like the percentage and how it should be calculated, may be a bit fuzzy at times. From the standpoint of the restaurant, too, the standards of what may or may not be tipped work for taking … Continue Reading
Just two years ago, a California case declining certification of an action would have been cause for comment. But since then, in 2011 the United States Supreme Court decided Wal-Mart Stores, Inc. v. Dukes, 131 S. Ct. 2541 (2011); in 2012 the California Supreme Court decided Brinker Rest. Corp. v. Superior Court, 53 Cal. 4th … Continue Reading
Court Finds No Support For 33%+ Attorney Fee Award It is axiomatic that the class action vehicle exists for the benefit of the claimants. An inherent conflict of interest may arise between the class and plaintiffs’ counsel over the issue of attorney fees, and resolution of that conflict may ultimately cause a court to reject … Continue Reading
On November 6, 1860, Abraham Lincoln was elected the 16th President of the United States. Shortly after his election, rumors of a possible plot to assassinate the decidedly pro-Union President-elect began to circulate. With several Southern states threatening secession from the Union, the tension in the D.C. area was palpable. On February 23, 1861, Lincoln … Continue Reading
Introduction In April 2010, Stephanie Sutherland (“Sutherland”) filed a putative class action against Ernst & Young under the Fair Labor Standards Act (“FLSA”) and New York law claiming that low-level accountants were improperly deprived of proper compensation for time worked in excess of 40 hours per week. Ernst & Young filed a motion to dismiss … Continue Reading
In some respects, one of the most difficult types of wage and hours lawsuits are so-called “off-the-clock” cases in which the employer has promulgated lawful time-keeping and compensation policies, but the plaintiffs contend that they were somehow discouraged from recording their time. These cases are almost impossible to handle on a class-wide basis because, virtually … Continue Reading
We’ve commented before that while most courts apply a fairly lenient standard at the “conditional certification” phase of Fair Labor Standards Act collective action litigation, plaintiffs tend to have a harder time in so-called “off-the-clock” cases. A recent decision from the Southern District of Ohio reflects that obtaining conditional certification can also be difficult where … Continue Reading
Hollywood certainly believes that it’s often easier to reach back into the well than to spend time creating something new. (See, e.g., any movie series that has more than one sequel.) Sometimes, we here at the Employment Class Action Blog are no different. Take, for example, this week’s Seventh Circuit decision in Espenscheid v. DirectSat, … Continue Reading
Courts often cite the generally lenient standard for conditional certification, but that standard, like any other, has its limits. In Holmes v. Quest Diagnostics, Inc.pdf., Case No. 11-80567 (S.D. Fla. June 14, 2012), the plaintiffs sought to represent a class of phlebotomists for Quest Diagnostics nationwide. They claimed that the company essentially required off-the-clock time … Continue Reading
On September 30, 2010, the United States District Court for the District of Massachusetts entered an interesting order in a case involving multiple issues under the Fair Labor Standards Act. In Travers v JetBlue Airways.pdf., airline JetBlue engaged an independent contractor named Flight Services and Systems (“FSS”) to provide skycaps Boston Logan Airport. Because … Continue Reading
“……and Please Remember to Tip Your Bartender And Waitress.” The famous 21 Club in New York was on the Curly end of a Larry-esque double-slap from the Southern District of New York last week. Alderman v. 21 Club.pdf Case No. 1:09-cv-2418 (Aug. 20, 2010). By way of background, the plaintiff employees in Alderman are seeking to … Continue Reading
After nearly 8 years of litigation, the Court of Appeals of Oregon recently affirmed the decertification of a class of between 600 to 1900 former U.S. Bank employees who claimed they were not timely paid after their termination. Belknap v. U.S. Bank Nat’l Ass’n, 235 Ore. App. 658 (2010). Following extensive discovery, the court found … Continue Reading
While most employment class actions today address overtime or independent contractor issues, discrimination actions are still alive and very dangerous for employers. Last May, a New York jury awarded $3.4 million in compensatory damages, and $250 million in punitive damages against pharmaceutical company Novartis in a case alleging sex discrimination involving sales representatives. That’s a … Continue Reading
On June 16, 2010, a federal court in New York held that a group of newspaper delivery drivers who claimed they were wrongfully misclassified as independent contractors under New York law could not pursue their claims as a class action. Edwards v. Publishers Circulation Fulfillment Inc., No. 09 Civ. 4968 (S.D.N.Y. 6/16/10). In an effort to … Continue Reading