Sixth Circuit Adopts New Certification Process in FLSA Collective Actions

On May 19, 2023, in Clark v. A&L Home Care and Training Center, LLC., the U.S. Court of Appeals for the Sixth Circuit rejected the familiar two-step certification procedure in collective actions under the Fair Labor Standards Act (FLSA), instead requiring lead plaintiffs to demonstrate a “strong likelihood” that other employees they seek to represent are “similarly situated” to the original plaintiffs. In so ruling, the Sixth Circuit became just the second circuit court to expressly reject the familiar two-step certification procedure in FLSA collective actions.

Federal District Court in Virginia Rejects Familiar Two-Step FLSA Collective Certification Approach

On April 14, 2023, the United States District Court for the Eastern District of Virginia (Ellis, J.) declined to conditionally certify a collective of USA Today sports website editors, ruling that the familiar two-step Fair Labor Standards Act (FLSA) collective certification process would lead to irrelevant parties learning of and potentially joining the lawsuit. The decision in Mathews represents a growing trend against the familiar two-step approach to certification of collective actions under the FLSA.

California Appellate Court Says Plaintiffs Can Enforce Paid Sick Leave Law Through PAGA

A California appellate court recently ruled that an employee may pursue claims under California’s Private Attorneys General Act (PAGA) that her former employer violated the state’s mandatory paid sick leave law. On the February 24, 2023, the California Court of Appeal Fourth Appellate District in Wood v. Kaiser Foundation Hospitals addressed language in the paid sick leave law that provides that “any person or entity enforcing this article on behalf of the public as provided for under applicable state law” is entitled “only to equitable, injunctive or restitutionary relief.”

Illinois Federal Judge Finds Another Eyewear Virtual Try-on Class Action Is Exempt Under BIPA’s Healthcare Exemption

A federal judge in Illinois recently ruled that online shoppers cannot sustain claims that a virtual try-on (VTO) tool that allegedly scans facial geometry to preview the look of sunglasses on their face violates the Biometric Information Privacy Act (BIPA or Privacy Act) because it falls into an exemption for “information captured from a patient in a health care setting.”

Third Circuit Finds Deductions From Exempt Employees’ PTO Do Not Impact Exempt Status Under the FLSA

On March 15, 2023, in a case of first impression, the United States Court of Appeals for the Third Circuit held that paid time off is not part of an employee’s salary. Therefore, the employer did not compromise employees’ exempt status under the Fair Labor Standards Act when it reduced their accumulated PTO for failing to meet performance objectives.

Illinois Supreme Court Rules Privacy Act Claims Accrue With Each Biometric Scan

On February 17, 2023, the Supreme Court of Illinois held claims under the Illinois Biometric Information Privacy Act (Privacy Act or BIPA) accrue on each and every scan or collection and further allowed so-called per scan damages. The ruling could open employers up to colossal and potentially devastating damages if the legislature does not amend the Privacy Act.

Illinois Supreme Court Rules Privacy Act Claims Have Five Year Statute of Limitations

On February 2, 2023, the Supreme Court of the State of Illinois ruled that all claims under Section 15 of the state’s Biometric Information Privacy Act (Privacy Act or BIPA) have a five year statute of limitations. The decision partially overturns an appellate court ruling that had found claims under subsections 15(c) and 15(d) of the Privacy Act were governed by a one-year limitations period under Illinois law for defamation and privacy claims.

First Jury Verdict Issued in Illinois Biometric Privacy Act Class Action

On October 12, 2022, a federal jury in the U.S. District Court for the Northern District of Illinois concluded that a company violated the Illinois Biometric Information Privacy Act (Privacy Act or BIPA) 45,600 times over six years by collecting truck drivers’ fingerprints to verify identities without the informed, written consent the Privacy Act requires.

California Federal Judge Applies Viking River to Dismiss Representative PAGA Claims

In Johnson v. Lowe’s Home Centers, LLC, a decision issued on September 21, 2022, a federal judge in the U.S. District Court for the Eastern District of California issued an order compelling arbitration of a plaintiff’s individual claims under the Private Attorneys General Act (PAGA) and dismissing the remaining representative PAGA claims.

No COVID-19 Slowdown for California PAGA Filings: The Data Is In

The COVID-19 pandemic did not slow down the pace of new California Private Attorneys General Act (PAGA) letters being filed with the state Labor Workforce Development Agency (LWDA), according to filing data. Instead, there was a significant increase in the filing of PAGA letters during the height of the COVID-19 pandemic in 2020 and 2021.

Supreme Court Sides With Viking River Over Arbitration of California PAGA Claims

On June 15, 2022, the Supreme Court of the United States ruled in favor of Viking River Cruises Inc. in a case over whether it could use an arbitration agreement to force a lawsuit brought under California’s Private Attorneys General Act (PAGA) on behalf of aggrieved employees into arbitration. In Viking River Cruises, Inc. v. Moriana, No. 20-1573, the Supreme Court’s highly anticipated decision, the Court reasoned that the Federal Arbitration Act (FAA) requires the enforcement of an arbitration agreement that waived an employee’s right to bring individual claims through PAGA and that once those individual claims are sent to arbitration there is no standing to bring representative claims for violations of the California Labor Code on behalf of other aggrieved employees.

Supreme Court Declines to Resolve Circuit Split on Exercise of Personal Jurisdiction in FLSA Collective Actions

On June 6, 2022, the Supreme Court of the United States declined to hear petitions seeking review of whether federal courts may exercise personal jurisdiction over claims of nonresident plaintiffs who join Fair Labor Standards Act (FLSA) collective actions when their claims are not connected to the defendant’s activities in the forum state.

California Court of Appeal Creates Rift Regarding Trial Courts’ Power to Strike or Limit PAGA Claims for Unmanageability

On March 23, 2022, the Court of Appeal of the State of California, Fourth Appellate District, issued the latest ruling on the hotly contested issue of whether a trial court is empowered to dismiss or limit representative claims for alleged violations of the California Labor Code under the Private Attorneys General Act (PAGA) based on manageability concerns.

California Court of Appeal Applies ‘Relation Back’ Doctrine to Substitute PAGA Plaintiff’s Claims Deadline

On February 7, 2022, a California appellate court issued the latest decision regarding the Private Attorneys General Act (PAGA). Representative PAGA actions, which typically involve a relatively brief statute of limitations, permit California employees to collect civil penalties on behalf of the State of California for Labor Code violations committed against them and other employees.

First Circuit Creates Split Regarding Federal Court Jurisdiction Over FLSA Multistate Collective Actions

On January 13, 2022, in Waters v. Day & Zimmermann NPS, Inc., the First Circuit Court of Appeals became the third federal appellate court to address the application of the Supreme Court of the United States’ decision in Bristol-Myers Squibb Co. v. Superior Court of California to Fair Labor Standards Act (FLSA) collective actions. Unlike the Sixth Circuit Court of Appeals and the Eighth Circuit Court of Appeals, however, the First Circuit concluded that a federal court does have personal jurisdiction over claims asserted by nonresident opt-in plaintiffs. The First Circuit’s decision thus creates a split among federal appeals courts and raises the prospect that the Supreme Court will ultimately have to resolve the issue.

Does the Federal Arbitration Act Preempt California’s Private Attorneys General Act? Supreme Court Takes Up Million-Dollar Question

On March 30, 2022, the Supreme Court of the United States will hear the matter of Viking River Cruises, Inc. v. Moriana, Case No. 20-1573. The Court will answer the question, “Whether the Federal Arbitration Act requires enforcement of a bilateral arbitration agreement providing that an employee cannot raise representative claims, including under PAGA.”

Supreme Court to Consider FAA Preemption of PAGA Claims

In a much-awaited decision, the Supreme Court of the United States indicated that it would consider whether the Federal Arbitration Act (FAA) preempts California’s rule prohibiting arbitration of Private Attorneys General (PAGA) claims under the California Labor Code. Depending upon the high court’s ultimate ruling, the case has the potential to upend wage and hour litigation in California.

California Court of Appeal Confirms Trial Courts’ Inherent Power to Strike or Limit Unmanageable PAGA Lawsuits

On September 9, 2021, a California Court of Appeal issued its ruling in Wesson v. Staples the Office Superstore, LLC, delivering a welcome victory to employers battling representative actions under the Private Attorneys General Act (PAGA). Under the 2004 law, an “aggrieved employee” is empowered to commence a PAGA representative action on behalf of all other “aggrieved employees” to seek civil penalties for alleged violations of the California Labor Code.

California Wage Theft Bill Would Raise the Stakes for Compliance

California Assembly Bill (AB) 1003 would create a new type of grand theft in the state: a company’s “intentional theft of wages” of more than $950 from any individual employee, or $2,350 total from 2 or more employees, in a 12-month period. The bill requires that the theft be intentional, through fraud and while knowing that the wages are due to the employee. The bill also defines “wages” to include “wages, gratuities, benefits, or other compensation.”

Supreme Court Provides Additional Guidance on FCRA Standing

On June 25, 2021, the Supreme Court of the United States issued a ruling that provides additional guidance related to the Fair Credit Reporting Act (FCRA), a federal law that regulates the collection of consumers’ credit information and access to their credit reports. In the employment context, the FCRA most frequently applies to background checks, including class actions alleging the most common background check claim—unlawful disclosure and authorization screens/forms (usually because of too much or too little information)—resulting in an informational injury.