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Court eliminates one strategy for ending class-action litigation

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in Compensation and Benefits,Employment Law,Human Resources

by Sean P. McDevitt and Kali T. Wellington, Esqs.

Employers continue to see more lawsuits alleging violations of the Fair Labor Standards Act (FLSA). The FLSA requires employers to pay employees a federal minimum wage, as well as pay nonexempt em­ployees time-and-a-half overtime pay for hours worked in excess of 40 per workweek.

An employee who feels that she has been deprived of overtime pay can sue in her own right, and also sue on behalf of other similarly situated employees. The “similarly situated” individuals must affirmatively opt into the lawsuit by filing with the court a written consent to join the lawsuit.

Those lawsuits are known as collective- or class-action lawsuits.

In an individual FLSA claim, the named plaintiff’s claim might involve relatively small amounts. Consequently, the financial exposure arising from the claims is typically quite manageable.

But a collective action may present a risk of hundreds, if...(register to read more)

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