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Green light on class actions for employees willing to gamble

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Employees can file class-action lawsuits on behalf of all similarly situated employees to recover unpaid overtime and other unpaid wages—if they are willing to give up their statutory rights to penalties and liquidated damages under New York State labor laws.

That means that a small case involving just a few hundred dollars can mushroom into a much larger case that could add up to millions of dollars in unpaid wages.

Recent case:
Alan Krichman and James Howell sued their former employer, J.P. Morgan, for alleged impermissible deductions from their wages and unpaid overtime. They were willing to give up statutory penalties and liquidated damages in order to have an opt-out state lawsuit. The court agreed they could proceed. (Krichman, et al., v. J.P. Morgan, et al., No. 06-CV-15305, SD NY, 2008) 

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