When the Supreme Court recently decided Genesis Healthcare Corp. v. Symczyk, 11-1059 (U.S. Apr. 16, 2013) employment attorneys across the country immediately jumped to the conclusion that they had the Court’s stamp of approval to use Rule 68 offers of judgment to foreclose individual and collective actions under the Fair Labor Standards Act (“FLSA”).
Three years ago, Professor Richard Epstein of the University of Chicago was peddling falsehoods and misconceptions about malpractice law that wouldn’t pass a 1L Torts class. Via Walter Olson, I see he’s back with a piece titled, “The Myth of a Pro-Business SCOTUS,” claiming “Commentators inaccurately condemn the five conservative justices as corporate shills.”
Back in January 2012, I posted a short item titled, Supreme Court Sets The Tone For 2012 Term: Might Makes Right, in which I recounted how the Supreme Court had begun the 2011-2012 term with two opinions that were great if you own a prison management company or fake credit repair company, but not so great if you were injured by a private prison’s malfeasance or defrauded by a consumer credit company.
Procedural rules that govern lawsuits in federal court permit defendants to make an “offer of judgment,” which is a mechanism allowing a defendant to offer to settle a lawsuit.
Supreme Court Rules That FLSA Collective Actions Are Distinct from Rule 23 Class Actions, but Fails to Resolve Circuit Split On Effect of Unaccepted Offers of Judgment
On April 16, 2013, the U.S. Supreme Court ruled in Genesis Healthcare Corp. v. Symczyk, that a plaintiff-employee’s Fair Labor Standards Act (“FLSA”) collective action could not proceed because her claims were moot after the defendant offered the plaintiff, per Federal Rule of Civil Procedure 68, full relief for her individual claims.
In Genesis Healthcare Corp. v. Symczyk, just decided on April 16, 2013, the U.S. Supreme Court held that, in a Fair Labor Standards Act (“FLSA”) case, an early settlement offer to an employee which moots his or her individual FLSA claim will preclude the employee from continuing with a larger collective action on behalf of other employees.
Q: What is easiest way to get rid of a wage and hour class action?
In Genesis Healthcare Corp. v. Symcyk, the U.S. Supreme Court, by a vote of 5 to 4, rejected an employee’s contention that her employer should not have been permitted to thwart her attempt to bring a collective action under the Fair Labor Standards Act (“FLSA”)
In Genesis HealthCare Corp. v. Symczyk, No. 11-1059 (April 16, 2013), the U.S. Supreme Court ruled that an employee could not continue pursuing her Fair Labor Standards Act (“FLSA”) collective action after her employer made an “offer of judgment” (a type of settlement offer) that would pay her entire claim.
I have posted several times about the offensive use of the FRCP Rule 68 Offer of Judgment in FLSA collective overtime (or other) actions, have myself utilized it to dispose of a FLSA collective action and have watched with great interest the journey to the US Supreme Court of the Genesis Healthcare case.