An Overview of Changes to FLSA that Employers Must Follow
The Federal Circuit Court for the 9th Circuit recently issued a ruling affecting the rights of employers in Fair Labor Standards Act collections proceedings. In Harrington v. Cracker Barrel, the Circuit Court panel held that the lower court had wrongfully claimed jurisdiction over all opt-in plaintiffs in an FLSA claim because of one of the plaintiffs had the requisite ties to the state in which the proceedings had been filed. Overall, the ruling gives employers firmer ground to stand on when challenging FLSA collections efforts.
Among the important things the court ruled are:
- The court must pay attention to jurisdiction—The court must now verify that it has jurisdiction before notifying any out-of-state employees
- Employees seeking to file FLSA collections actions have fewer jurisdictional options, discouraging so-called “forum shopping”
- Employers have specific rights to dispute any out-of-state claims with no connection to the forum where the collection action is filed
Specifically, the Circuit Court concluded that, in these matters, personal jurisdiction must be determined on a case-by-case basis—each claimant must meet the requirements for personal jurisdiction. The court also affirmed the lower court’s denial of defendant Cracker Barrel’s motion to compel arbitration, noting that there were still factual issues to be resolved.
Let Stephen Hans & Associates Advise You Regarding Your Rights as an Employer in an FLSA Collection Action
At Stephen Hans & Associates, we have successfully advised and represented many New York City employers many years, helping them meet employment law requirements and protecting their rights in employment litigation. Susan Lacerte, executive director of the Queens Botanical Garden has lauded us for our “dedication, knowledge and experience” and for helping the Botanical Gardens “successfully resolve difficult legal issues with [our] talent, negotiating skills, personal care and attention.”
Our experienced attorneys are glad to answer your questions and provide legal advice. Our offices are conveniently located in Long Island City with easy access from Manhattan.