/>iThis week, we examine a recent pivotal ruling by the U.S. Court of Appeals for the Ninth Circuit that could significantly influence how employers handle Fair Labor Standards Act (FLSA) collective actions.
Nationwide FLSA Lawsuits Just Got Harder—Here’s Why
In Harrington v. Cracker Barrel Old Country Store, Inc., the Ninth Circuit ruled that, in FLSA collective actions, federal courts must evaluate personal jurisdiction before allowing notices to out-of-state employees in nationwide claims—a move that strengthens employers’ ability to challenge these cases.
Key Takeaways for Employers
- Jurisdiction matters: Courts must confirm jurisdiction before notifying out-of-state employees.
- Limited forum shopping: Plaintiffs face limits to filing in unrelated jurisdictions.
- Stronger grounds for employers: Employers can challenge out-of-state claims with no forum ties.
- Arbitration implications: Courts may notify employees under arbitration agreements.
In this episode of Employment Law This Week®, Epstein Becker Green attorney Courtney McFate describes the Harrington ruling and shares insights to help employers adapt and minimize costly lawsuits.
