“Sometimes surrender is the best option.” That is how Judge Raymond J. Dearie of the U.S. District Court for the Southern District of New York described how the Rule 68 Offer of Judgment may be used by employers to pay—i.e., “pick off”—individual plaintiffs to defeat a broader and significantly more costly FLSA collective action in his recent opinion in Anjum v. J.C. Penney Co., Inc..
Another Federal Court Decertifies FLSA Collective Action of Hospital Workers Challenging Auto-Deduct Policy
We have previously discussed that, while medical providers have become a common target of plaintiffs asserting wage and hour claims arising out of so-called “auto-deduct” policies, more and more courts are realizing that the inherently fact-specific nature of these lawsuits make class treatment very difficult. See our posts from June 23, 2014, and September 17, 2014].
Putative Class Members Not Lovin’ It – Court Denies Conditional Certification of Supersized McDonald’s FLSA Class of More Than 1,000
McDonald’s, the fast food giant known for supersizing its orders, avoided conditional certification of an FLSA collective action this week based on the “very large” size of the putative class. The Eastern District of Michigan denied plaintiffs’ motion for conditional collective action certification in two related cases based on allegations that McDonald’s and several franchisees failed to pay workers minimum wage.
We’re Talking About Practice: Court Finds Document-Reviewing Temp Attorney is Engaged in Practice of Law and Therefore Exempt
On Monday, a federal judge in New York dismissed a proposed FLSA collective action filed by an hourly temp attorney on the grounds that the temp was exempt from the FLSA’s overtime requirements.
Franchisor is Not the Employer of Franchisee’s Employee Under the FLSA, So Says the Fifth Circuit Court of Appeals
Plaintiffs have recently been stretching the limits of who is their employer for purposes of protection under state and federal employment laws. We recently reported about a case against 7-Eleven where the Court refused to dismiss a complaint filed by the franchisee’s employees against the franchisor where the employees argued that the franchisor was, for purposes of the federal Fair Labor Standards Act (“FLSA”), their employer.
Apologies to John Steinbeck, but in some ways, both 2013 and 2014 have been the winters of FLSA plaintiffs’ discontent on the East Coast.
Effective January 1, 2015, the Fair Labor Standards Act overtime exemption for “domestic service workers” will change, having significant ramifications for employers of these employees.
The high volume of FLSA litigation, particularly in jurisdictions such as New York and Florida, has in recent years forced many small businesses truly outside the scope of FLSA coverage to defend lawsuits brought pursuant to its minimum wage and overtime provisions.
Last summer, the Second Circuit issued a flurry of decisions clarifying the pleading standard in FLSA cases. In one of those cases, Dejesus v. HF Management Services, LLC, the court held that, in order to state a valid overtime claim after the Supreme Court’s decisions in Iqbal and Twombly, “a plaintiff must sufficiently allege 40 hours of work in a given workweek as well as some uncompensated time in excess of the 40 hours.”