Employment Law Blog

Filter:  Leuthold v. Destination America Inc.

The Fair Labor Standards Act and Class Action Suits in California

There are many public policy considerations that favor the use of class actions in the employment context in California.  First, individual awards in employment cases tend to be modest so the availability of a class action claim plays an important function by permitting employees a relatively inexpensive way to resolve their disputes. Additionally, class actions allow many employees, who may not otherwise file an individual suit due to fear of retaliation, to safely have their day in court as a member of the class. Class actions also serve to inform and protect employees who, for one reason or another, may not otherwise become aware that their rights are even being violated.

Meal and rest break claims are specifically suited to class treatment. See Brinker Rest. Corp., 53 Cal.4th at 1033 (certifying a California class with meal and rest break claims).

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The Class Certification Process

Under the Fair Labor Standards Act (“FLSA”), individuals may bring suit “on behalf of himself or themselves and other employees similarly situated.” 29 U.S.C. §216(b). Neither the statute itself nor the Ninth Circuit have defined the term “similarly situated,” Luque v. AT&T Corp., 2010 WL 4807088 (N.D.Cal. Nov. 19, 2010) at *3, citing Lewis v. Wells Fargo & Co., 669 F.Supp.2d 1124, 1127 (N.D.Cal. 2009). Courts in the Ninth Circuit take a two-step approach to determine whether plaintiffs are “similarly situated.” Id.

The Court’s first step is to make an initial, conditional determination of whether the plaintiffs are similarly situated, “deciding whether a collective action should be certified for the purpose of sending notice to potential class members.” Luque, supra, at *3, quoting Lewis, supra, at 1127. The initial notice stage determination utilizes a lenient standard that typically results in certification. Wynn v. National Broad Co., Inc., 234 F.Supp.2d 1067, 1082 (C.D.Cal. 2002). While the initial inquiry is not a mere formality, plaintiffs seeking conditional certification need only provide “substantial allegations, supported by declarations or discovery.” Luque, supra, at *3, citing Kress v. PriceWaterhouseCoopers, LLP, 263 F.R.D. 623, 627 (E.D.Cal. 2009). Indeed, “Courts need not even consider evidence provided by defendants at this stage.” Luque, supra, at *3 (emphasis in original), quoting Kress, supra, at 628.

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