Using an Offer of Judgment to Your Advantage
post via the Carlock Copeland Your EPL Lawyer blog
A recent U.S. Supreme Court case gives employers a possible “early out” in wage and hour collective action cases.
The Fair Labor Standards Act (FLSA) establishes federal minimum-wage, maximum hour and overtime guarantees that cannot be modified by contract. It also permits an employee to sue her employer on behalf of herself and other “similarly situated” employees in what’s known as a “collective action.” But, what happens to the collective action when the single employee bringing the lawsuit is offered everything she stands to recover under the FLSA? According to the Supreme Court in Genesis Healthcare Corp. v. Symczyk1, the collective action can no longer proceed and must be dismissed.