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Category Archives: Class Actions

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Choice of Law Provisions and Class Actions

Posted in Class Actions

Picture this: you’re enjoying a lovely evening with friends inside a hole-in-the-wall restaurant in Brooklyn.  As the evening is winding down, the clouds open up and give way to a torrential down-pour.  You think to yourself, “How am I possibly going to hail a cab in this weather…and in Brooklyn of all places.” Luckily, you… Continue Reading

Skadden Case Will Bring More Focus On Issue of “Non-Exempt” Attorneys

Posted in Class Actions, Exemptions, Working Time

I have been following the series of lawsuits filed by attorneys who claim they were not performing “attorney” work and are therefore entitled to overtime in collective and class actions filed under the Fair Labor Standards Act. Now, the major law firm of Skadden Arps, in defending one such suit, has filed a motion to… Continue Reading

Avis Loses De-Cert Motion In Shift Managers FLSA Collective Overtime Action

Posted in Class Actions, Overtime Issues

When a class becomes conditionally certified in a FLSA collective action, the only weapon (absent settlement) that the defendant-employer then is left with is a motion to de-certify the class and reduce the litigation to a single plaintiff. Putting all of one’s eggs in that basket is risky, because if that overture fails, the plaintiffs… Continue Reading

Wage and Hour Class Actions

Posted in Class Actions, Exemptions, Overtime Issues

Certain types of employees, who are classified as exempt employees, are not entitled to overtime pay as guaranteed by the FLSA.  It follows that non-exempt employee are entitled overtime if they work more than 40 hours per week.  A recent settlement highlights some of the issues that can arise when employees are misclassified as exempt,… Continue Reading

Huge Settlement in FLSA Bank of America Case Highlights Prudence of Getting Out Early

Posted in Class Actions

A settlement has just been approved whereby Bank of America will pay $73 million to end a multidistrict litigation in which a class of 180,000 hourly employees accused the Company of compelling them to work off the clock. The Court approved the settlement, notwithstanding that it noted that the plaintiffs, a class of retail banking… Continue Reading

Starbucks Tip Pooling Case – New Rule for New York Employers

Posted in Class Actions

About a year ago, Mark blogged about a tip pool case involving Starbucks where the tip credit (allowing employers to pay a sub-minimum wage) was destroyed when “improper” people (i.e. managers) shared tips along with rank-and-file employees.  Mark explained that the liability in these cases can be astronomical because the employer has to pay the difference between… Continue Reading

Paying Employees By Debit Card May Be A Problem

Posted in Class Actions

Nowadays, many employers are not giving employees paper checks. Nowadays, people usually/often get direct deposit although many states mandate that an employer cannot compel employees to accept direct deposit. To cut down on problems and potential thefts, etc, many employers have recently gone to paying employees with debit cards, analogous to the “gift cards” that… Continue Reading

The Wave Of Intern Suits: When Are They Employees?

Posted in Class Actions

I have posted a number of times on the slew of intern lawsuits recently filed under the Fair Labor Standards Act. This may be a new “wave” or fertile new ground for plaintiff side practitioners so I keep following these cases, particularly, the Hearst Corporation case, with more than a little interest. This particular case is… Continue Reading

What Employers Should Know About Vacation Pay

Posted in Class Actions

Do employers need to pay employees for accrued vacation time upon termination?  This is a question without a simple answer, and one that has been heavily litigated over the past several years.  Unlike most wage and hour issues, the Fair Labor Standards Act does not address this concern.  Rather, the payout of vacation time has… Continue Reading

Just In Time For Tax Season–Auditors Test Professional Exemption Against Price Waterhouse in Yet Another Class Action

Posted in Class Actions, Exemptions

I have noticed that there are not many lawsuits (e.g. class actions) brought that test the limits of the professional exemption.  That exemption, geared towards anyone with an advanced degree (lawyer, doctor, CPA, engineer) is fairly well defined and a lawsuit easily defended.  That rule, however, has its exceptions, as demonstrated by the granting of… Continue Reading

Tough Questions For The Interviewer: Charlie Rose Settles Class Action Intern Lawsuit Alleging Employee Status

Posted in Class Actions, Working Time

In other blog posts, I have commented on a number of lawsuits, class action suits, filed on behalf of individuals who were hired as “interns” but who then claim that they were actually “employees” under the FLSA and should have been compensated.  There are definite criteria that have to be met for someone to be… Continue Reading

Supreme Court Will (Finally) Rule On Offer of Judgment Procedure Used To Moot FLSA Collective Actions

Posted in Class Actions

These are happy times for management side lawyers, I predict.  The U.S. Supreme Court has heard oral arguments on the issue of whether utilizing the Rule 68 FRCP Offer of Judgment procedure to, essentially, “pick off” the lead, named plaintiff in a FLSA collective action ends up undermining the validity of the entire class if… Continue Reading

Professional Exemption Defense Dooms Large FLSA Collective Action Against KPMG

Posted in Class Actions, Exemptions

A federal judge has dismissed a FLSA class action lawsuit where the theory was the group of employees was improperly classified as exempt.  There were more than one thousand current and former KPMG LLP employees who could have potentially been class members.  The liability would have been, to put it mildly, geometric.  The case is… Continue Reading

Large Damages Award In Starbucks Tip Pool Case Demonstrates (Again) Danger of Managers Sharing In These Pools

Posted in Class Actions, Exemptions

I have written before on these tip pool cases involving Starbucks and other restaurants where the tip credit (which allows an employer to pay a sub-minimum wage) is destroyed.  This happens because “improper” people (i.e. managers) share tips along with rank-and-file employees.  Suffice to say that the liability in these cases can be astronomical, because… Continue Reading