What is a FLSA collective action?

What is a FLSA collective action?

As many readers of this blog know, the Fair Labor Standards Act (FLSA) allows employees to sue for overtime and minimum wage violations on behalf of themselves and those “similarly situated” in a “collective action.” FLSA collective actions often present significant exposure for employers because of the potentially …

What federal government department regulates FLSA?

the U.S. Department of Labor
The Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) administers and enforces the FLSA with respect to private employment, State and local government employment, and Federal employees of the Library of Congress, U.S. Postal Service, Postal Rate Commission, and the Tennessee Valley Authority.

Which government agency oversees the FLSA enforcement?

Wage and Hour Division
Wage and Hour Division (WHD) The Wage and Hour mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the Nation’s workforce. The WHD enforces Federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the Fair Labor Standards Act.

What is the difference between a collective action and class action?

Unlike a class action, which requires a party to opt-out or the party will be bound to the settlement or judgment, in a collective action the party must join the case or will not benefit from any settlement or judgment in the collective’s favor.

What is an example of collective action?

Collective action refers to the actions taken by a collection or group of people, acting based on a collective decision. For example, if you choose to walk instead of drive, then you are taking an individual action. Collective action often involves larger scales, since there are more people involved.

Who falls under FLSA?

Generally, the FLSA applies to employees of enterprises that have an annual gross volume of sales made or business done totaling $500,000 or more, and to employees individually covered by the law because they are engaged in interstate commerce or in the production of goods for commerce.

What is required for a class action to be certified?

Plaintiffs seeking to certify a class under Federal Rule 23 must plead and prove: (1) an adequate class definition, (2) ascertainability, (3) numerosity, (4) commonality, (5) typicality, (6) adequacy and (7) at least one of the requirements in Rule 23(b), namely: (a) separate adjudications will create a risk of …

Who is the plaintiff in a FLSA class action?

As with a “class action” brought under Rule 23 of the Federal Rules of Civil Procedure, a named plaintiff (or plaintiffs) in an FLSA collective action files suit on behalf of himself and other similarly situated current or former employees.

How is a collective action determined under FLSA?

Second, unlike Rule 23 class actions, courts use a two-phase inquiry to determine whether to certify a collective action under the FLSA.

How many lawsuits are filed under the Fair Labor Standards Act?

Employers are continuing to see an increase in the number of wage and hour lawsuits filed by current or former employees under the federal Fair Labor Standards Act (“FLSA”). In 2010, 6,081 FLSA lawsuits were filed in U.S. federal courts.

Can a FLSA claim be filed for fringe benefits?

The FLSA does not provide wage payment or collection procedures for an employee’s usual or promised wages or commissions in excess of those required by the FLSA. However, some States do have laws under which such claims (sometimes including fringe benefits) may be filed.