Court disallows salespeople’s bid for class-action status — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
  • LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Court disallows salespeople’s bid for class-action status

Get PDF file

by on
in Employment Law,Human Resources

A federal judge in the Western Dis­­trict of New York has decertified a class of outside salespeople who alleged they were misclassified, citing two recent Supreme Court decisions.

In April this year, the Supreme Court ruled in Comcast v. Behrend that plaintiffs must show that class-wide remedies are available in order for a class-action lawsuit to move forward.

In the 2011 landmark case Dukes v. Wal-Mart, the court said class-action settlements must offer common an­­swers to common questions. If class members face many different issues, then they must be litigated individually, not via a class action.

In Tracy v. NVR, Inc., the Western District court found that the outside salespeople who made up the class raised very different issues and performed their work in diverse environments.

The court concluded, “the interests of judicial economy would not be served by the hundreds of fact-­intensive ‘mini-trials’ that a class action of this nature would require.”

Note: Have your attorney review outside salespersons’ activities to ensure they are properly classified under the FLSA.

Leave a Comment

Previous post:

Next post: