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For 40 years, the majority of federal courts have followed the holding of Lynn’s Food Stores, Inc. v. U.S., 679 F.2d 1350 (11th Cir. 1982), that FLSA claims may be settled only through approval by the U.S. Department of Labor (DOL) or through a lawsuit filed by the individual, in which a court of competent jurisdiction enters a stipulated judgment, after reviewing the proposed settlement for fairness.
Since 2021, the challenge to California’s Assembly Bill (AB) 51 (on employment arbitration) has been in limbo awaiting the U.S. Court of Appeals for the Ninth Circuit’s decision on a petition to rehear the appeal en banc.
Joining two other circuits, the U.S. Court of Appeals for the Third Circuit has held that Bristol-Myers does apply to FLSA collective actions, and therefore, federal courts may not exercise jurisdiction over claims of out-of-state opt-in plaintiffs in putative collective actions, other than in the states in which the employer has its principal place of business or is incorporated.
Do trial courts have inherent authority to strike or narrow Private Attorneys General Act (PAGA) claims they deem unmanageable?
Saying the U.S. Supreme Court ruling in Viking River Cruises, Inc. v. Moriana, No. 20-1573 (June 15, 2022), that bilateral arbitration agreements governed by the Federal Arbitration Act (FAA) may require arbitration of California Private Attorneys General Act (PAGA) claims on an individual basis only, perhaps should be modified to avoid “unwarranted and incorrect resolution of the unbriefed issues of contract construction and state law statutory standing[,]” the respondent, Angie Moriana, has petitioned the Court to reconsider the decision.
In Estrada v. Royalty Carpet Mills, Inc., 76 Cal. App. 5th 685 (2022), the California Court of Appeal, in relevant part, reversed a trial court’s order decertifying a subclass and dismissing related Private Attorneys General Act (PAGA) claims as unmanageable. In doing so, the court held “a court cannot strike a PAGA claim based on manageability.”
The Class Action Fairness Act (CAFA) offers a broader avenue for removal of a case to federal court than traditional diversity jurisdiction.
Explaining for the first time “who bears what burdens when a class member objects to a proposed settlement,” the U.S. Court of Appeals for the Fourth Circuit affirmed in an insurance case a district court’s order approving a proposed class settlement and overruling objections to the settlement.
This question is pending before the U.S. Supreme Court in Southwest Airlines Co. v. Saxon (No. 21-309), a putative wage-and-hour collective action. The court heard oral argument on March 28, 2022. (Only eight of the nine justices participated. Justice Amy Coney Barrett was recused from this case.)
On February 3, 2022, the Illinois Supreme Court held in the case of McDonald v. Symphony Bronzeville Park, LLC, 2022 IL 126511, that the exclusivity provisions of the Illinois Workers’ Compensation Act (the “Compensation Act”) do not preempt a claim for statutory damages under the Illinois Biometric Information Privacy Act (“BIPA”). The Court found that damages to an individual’s right to privacy as a result of a BIPA violation are not the type of compensable injuries capable of redress under the Compensation Act. This decision, while bootstrapping an employer’s protections from claims for severe physical and psychological injuries sustained in the workplace, leaves employers exposed to tremendous liability for technical BIPA violations even without a showing of actual damages.
Most employment-based permanent residency applications require the applicant to go through the PERM labor certification process where the U.S. Department of Labor (DOL) certifies that there are not sufficient U.S. workers able, available, and qualified to fill a position.
On May 18, 2023, the United States Supreme Court issued its long-awaited decision in Andy Warhol Foundation for the Visual Arts, Inc. v. Goldsmith, a case that presented the Court with an opportunity to bring clarity to the often highly subjective standards lower courts apply when deciding the issue of fair use of visual works of art under copyright law.
It is more important than ever that employers understand the serious long-term, non-monetary consequences of settling or accepting Occupational Safety and Health Administration (OSHA) citations.
A new Washington law regulating employers’ use of production quotas or production standards for employees working at warehouse distribution centers (House Bill 1762) will go into effect on July 1, 2024.
As a part of the Consolidated Appropriations Act, 2023 (CAA), Congress passed new exceptions to the Physician Self-Referral Law (Stark Law) and the federal Anti-Kickback Statute (AKS) allowing certain healthcare entities to provide mental health or behavioral health improvement and/or maintenance programs to physicians and other clinicians.
On May 17, 2023, the Texas Senate approved Senate Bill No. 14 (SB 14), prohibiting physicians from providing gender-affirming medical care to minors experiencing gender dysphoria (distress that results from having one’s gender identity not match one’s sex assigned at birth).
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