when can an attorney threaten to remove lead plaintiff from fsla collective action

by Ashley Altenwerth 7 min read

What is a lead plaintiff in a class action lawsuit?

Aug 29, 2012 · FLSA Collective Action Dismissed for Failure of Lead Plaintiff To File Opt-in: Yes! By Mark Tabakman on August 29, 2012. When I begin defending a Fair Labor Standards Act collective action, one of the first strategies I look for is to find some way to kick the named plaintiff out of the lawsuit, whether through, perhaps, a Rule 68 Offer of Judgment or a …

How does a court decide a lead plaintiff Award?

Jan 14, 2021 · By contrast, section 216(b) of the FLSA authorizes a collective action, not a class action. Under the collective action model, any “similarly situated” plaintiff may …

Why are Attorney’s fees so high in FLSA cases?

Jun 17, 2009 · Section 216 (b) of the FLSA, the collective action provision, provides that no employee other than the plaintiff “shall be a party plaintiff to [a FLSA collective] action unless he gives his consent in writing to become such a party and such consent is filed in the court in which such action is brought.”

Should I serve as the lead plaintiff in my case?

Sep 14, 2017 · September 14, 2017. An Illinois plaintiff has filed an FLSA collective action lawsuit against her former employer, claiming that she and other employees were not paid rightfully for the time they worked. Plaintiff Syrria Williams, the lead plaintiff in this FLSA collective action lawsuit, claims that she and other employees often worked for ...

What is the role of the federal court in overseeing the joinder of additional parties?

More broadly, the Court held that federal courts have a “managerial responsibility to oversee the joinder of additional parties to assure that the task is accomplished in an efficient and proper way.”.

When did collective action become unwieldy?

As employers grew in size and as their decision-making became more centralized in the decades following the 1947 enactment of section 216 (b), the collective action process began to prove unwieldy. For example, an overtime claim traceable to a corporate decision to treat a particular position as exempt rather than non-exempt could easily lead ...

What was the Swales case?

The Swales case was a typical piece of FLSA litigation when it commenced. The named plaintiffs filed suit in federal court in Mississippi, alleging that the trucking company KLLM misclassified the plaintiff drivers as independent contractors and in so doing violated the FLSA’s minimum wage requirements. After limited discovery, the plaintiffs moved for conditional certification. The trial court granted the motion, but took the unusual step of certifying an interlocutory appeal to the Fifth Circuit on the ground that that there were “open questions regarding the applicable standard” of conditional certification.

What is the Fifth Circuit ruling?

A groundbreaking ruling from the U.S. Court of Appeals for the Fifth Circuit threatens to upend decades of federal court practice concerning the management of collective actions brought under the Fair Labor Standards Act.

Why is conditional certification rarely addressed by courts of appeal?

As the Fifth Circuit noted, the conditional certification standard is rarely addressed by courts of appeal because the conditional certification order is interlocutory and because most conditional certification orders lead directly to settlement.

Does FLSA stop running?

Significantly, there is a direct correlation between early notice and case value, since the FLSA statute of limitations does not stop running for a particular member of the collective until that member files an opt-in notice with the court.

What is the Fifth Circuit ruling?

A groundbreaking ruling from the U.S. Court of Appeals for the Fifth Circuit threatens to upend decades of federal court practice concerning the management of collective actions brought under the Fair Labor Standards Act.

Why is conditional certification rarely addressed by courts of appeal?

As the Fifth Circuit noted, the conditional certification standard is rarely addressed by courts of appeal because the conditional certification order is interlocutory and because most conditional certification orders lead directly to settlement. When appellate courts have weighed in, they have also expressed skepticism of the Lusardi approach. For example, in its 2018 decision in Campbell v. City of Los Angeles, the much more progressive Ninth Circuit critiqued what it deemed the “ad hoc” approach to conditional certification, although it did not discard the conditional certification process altogether. And it is not unreasonable to think that Judge Willett’s textualist argument that the FLSA does not authorize conditional certification would find favor with a majority of the current Supreme Court.

Is section 216 a joinder?

For this reason, courts have construed the section 216 (b) collective action procedure as a “rule of joinder,” similar to a mass tort claim . As employers grew in size and as their decision-making became more centralized in the decades following the 1947 enactment of section 216 (b), the collective action process began to prove unwieldy.

What happened in Fast v. Cash Depot?

Cash Depot Ltd., a federal court in Wisconsin recently denied a plaintiff’s request for attorney’s fees and costs because it found that the plaintiff was not a “prevailing party.” In this collective action lawsuit, the employee sued his employer for allegedly failing to pay him and similarly situated Field Service Technicians the correct rate of overtime pay for all overtime hours worked. The employer quickly hired an accounting firm to investigate its pay practices. Based on the accounting firm’s finding that the employer did not pay the correct amount of overtime owed to its employees, the employer sent checks to its current and former employees for the unpaid overtime pay, and also mailed a check for the lead plaintiff’s underpaid overtime pay, liquidated (double) damages, and attorney’s fees accrued through that point in the litigation (based on the amount claimed by plaintiff’s counsel in discovery). The lead plaintiff did not cash the check and his attorneys ultimately requested a significantly higher attorney’s fee award after briefing on the employer’s motion to dismiss.

What is Section 216 B of the FLSA?

The court noted that Section 216 (b) of the FLSA “plainly requires that the plaintiff receive a judgment in his favor to be entitled to attorney’s fees and costs.”. Essentially, the court held that in order for an employee to be considered a “prevailing party” under the FLSA, the court must award a judgment to the employee or approve ...

Do FLSA attorneys fees exceed claims?

If you have ever had to defend against a lawsuit under the FLSA, you probably know that attorney’s fees awards often far exceed the value of your employee’s claims. This is especially true in collective action cases, which often involve extensive litigation resulting in a higher fee award.

Did the lead plaintiff get attorney's fees?

Because the employer in this case paid all of the overtime pay owed to the lead plaintiff and its current and former employees, and the parties did not seek court approval of a settlement agreement, the lead plaintiff was not entitled to attorney’s fees.

Does FLSA pay attorney fees?

Unlike the general presumption in the United States that each party to a lawsuit pays its own attorney’s fees, the FLSA provides for a mandatory award of attorney’s fees to an employee who prevails on his or her claim.

What is the Third Circuit's decision in the Halle case?

While the Third Circuit did not fully resolve the question of what it means to be a “party plaintiff,” two aspects of the Halle decision may prove helpful to defendants seeking to assert their right to obtain discovery from all opt-in plaintiffs in a collective action.

What is the rule of civil procedure 23?

Unlike a class action brought under Federal Rule of Civil Procedure 23, where all putative class members are bound by the court’s ruling unless they affirmatively “opt out” of the case, “the existence of a collective action depends upon the affirmative participation of opt-in plaintiffs.”.

Can opt-in plaintiffs appeal a final judgment?

Second, in holding that the opt-in plaintiffs had no right to appeal a final judgment involving the named plaintiff, the court emphasized the importance of “the language of their opt-in consent forms, which handed over all litigation authority to named plaintiff.”.

Who is the lead plaintiff in a class action?

Put simply, the lead plaintiff is the person who files the lawsuit. In some cases, there is more than one lead plaintiff. For almost every class action, the lead plaintiff’s experience with a defendant’s alleged wrongdoing will line up with those of the “class” – that is, the group of people the lawsuit looks to cover.

What is a lead plaintiff?

What is a lead or named plaintiff? The lead plaintiff—or, less formally, the named plaintiff—is the individual whose name goes on the lawsuit and who represents the entire group of people who were allegedly harmed by the defendant’s (or defendants’) wrongdoing.

What is the responsibility of a lead plaintiff?

Without question, a lead plaintiff’s most important responsibility is accepting and rejecting settlement offers. This is particularly important to keep in mind given that it is much more likely for a case to settle than for it to end up in a courtroom trial. At the end of the day, it falls to the lead plaintiff and their counsel to weigh ...

Is serving as a lead plaintiff a cruise down easy street?

Wrapping Up. Serving as the lead plaintiff is not a cruise down easy street, but it’s also far less intensive than what’s asked of the plaintiff in other types of litigation. As with everything, serving as a lead plaintiff has its pros and cons, and frankly not everyone is cut out for the role.

Does the lead plaintiff have to pay attorney fees?

Despite their level of involvement, the lead plaintiff will generally not be on the hook for paying attorneys’ fees and will bear little to no financial responsibility for any out-of-pocket costs, such as the cost of postage and travel, related to the lawsuit.

Can an attorney speak to a number of consumers?

It’s not uncommon, however , for attorneys to speak to a number of consumers—sometimes hundreds, sometimes only a handful—after learning of a particular wrongdoing before they find the one or two individuals they believe best fit the mold to be the lead plaintiff.

Do you have to sit up for class action?

In fact, for most class action cases, class members only need to sit up and pay attention once the case settles and the claims process begins. The lead plaintiff, on the other hand, is far more involved in the various stages of a class action, from its filing all the way through to potential settlement discussions.

Can an attorney use threats against someone?

An attorney cannot use threats against someone to gain an advantage in a civil matter. However, the attorney can warn that person that he is about to file a lawsuit to resolve a matter.

Is an in person meeting a good way to resolve a dispute?

Sometimes an in-person meeting is a good way of resolving disputes without resorting to a lawsuit. That being said, in the situation you describe, the aggrieved party should at least consult with an attorney to go over the specifics, the background, the evidence and then options and recommendations. It will be worth the cost of the consultation fee.

Can an attorney write a demand letter?

It is permissible for an attorney to write a demand letter and say that he will file suit if you don't pay the demand, but after that, he ought to just sue or shut up. You don't have to meet him personally, and you probably should not. If you have proof proof, not suspicion that he is romantically involved with his client, you could report him to the California State Bar Association, as that is an ethical violation. Don't threaten to report him, as that would be wrong, but you have the right to report him for such wrongdoing. You can also hire an attorney to represent you in this matter, and that will put a stop from the attorney's contacting you at all. Good luck.

Is it unethical to threaten a lawsuit?

It is not unethical to threaten a lawsuit if you refuse to negotiate a settlement. You, or whoever is receiving the message should offer to consider any demands, but let the lawyer know you are uncomfortable meeting, if you are. If the lawyer becomes uncivil, or threatens action he knows he cannot take, such as threatening criminal charges, that would be unethical.