In 2005, Congress passed the Class Action Fairness Act (CAFA), which creates federal jurisdiction over class actions involving more than 100 class members and $5 million in controversy. Plaintiffs have long attempted to avoid CAFA’s invocation of federal jurisdiction by stipulating to no more than $5 million in classwide damages. In Standard Fire Ins. Co. v. Knowles, 133 S. Ct. 1345 (2013), the Supreme
California Further Restricts Employer Recovery of Prevailing Party Attorney’s Fees
California has amended Labor Code § 218.5 to limit the circumstances under which an employer may recover its attorney’s fees and costs as the prevailing party in a lawsuit in which an employee has sued for nonpayment of wages, fringe benefits, or health and welfare or pension fund contributions (SB 462). Prior to enactment of Senate Bill 462, the prevailing party (either the employer or
Second Circuit Reaffirms Enforceability of Arbitration Agreements Containing Collective Action Waivers In Two FLSA Cases
Two recent decisions from the U.S. Court of Appeals for the Second Circuit have reaffirmed the enforceability of employment-related arbitration agreements containing class action waivers. In Sutherland v. Ernst & Young and Raniere v. Citigroup, Inc. the Second Circuit held that the Federal Arbitration Act (FAA) requires courts to enforce a valid agreement to arbitrate even where the relevant substantive law – here, the Fair
VIDEO: Plaintiffs Look to PAGA as Class Certification Gets Tougher
Laura Reathaford is featured in a video interview on California PAGA-related class actions. Click here for video.
U.S. Supreme Court Emphasizes Importance of Common Issues in Class Actions
Over the past two weeks, the United States Supreme Court has repeatedly underscored the importance of having common questions that are susceptible to common answers in cases where plaintiffs are seeking class certification. Most recently, the Court clarified that this requirement, which has now been considered in both antitrust and employment cases, applies with respect to both merits and damages issues. As discussed below, this clarification presents employers with a potent new tool in the defense of class action wage-and-hour cases.
On March 27, 2013, the Court issued its decision in Comcast Corporation v. Behrend, a putative antitrust class action brought on behalf of 2 million cable subscribers in 649 franchise areas alleging overcharging through an alleged attempted monopoly. In considering whether the class should be certified, the Court held that the need for individualized inquiries with respect to damages issues precluded class certification. (Opinion available here.) Moreover, the Court stressed that lower courts must perform a probing analysis when deciding whether to certify a class in order to ensure the existence of common answers to common questions.
Reporters’ Class Action For Unpaid Overtime Should Not Have Been Certified
Wang v. Chinese Daily News, 2013 WL 781715 (9th Cir. 2013)
Plaintiffs (reporters for the Chinese Daily News) alleged they were non-exempt employees entitled to overtime pay under the Fair Labor Standards Act (FLSA) and California state law. The district court granted summary judgment in favor of the reporters, finding journalists are not subject to the creative professional exemption to the FLSA or California
Arbitration Clauses Are Enforceable Despite Waiver Of Classwide Arbitration Rights
Flores v. West Covina Auto Group, 2013 WL 139200 (Cal. App. Jan. 11, 2013)
Israel Flores and Andrea Naasz sued West Covina Toyota (WCT) and Toyota Motor Sales for selling them a “lemon,” alleging both individual and class action claims, including claims for violations of the Consumer Legal Remedies Act (CLRA). WCT filed a motion to compel arbitration and enforce the class action waiver contained
Certification Was Properly Denied In Class Action Seeking Reimbursement From Employer
Morgan v. Wet Seal, Inc., 210 Cal. App. 4th 1341 (2012)
Crystal Morgan and two other former employees sued Wet Seal because the company allegedly required employees to purchase Wet Seal clothing and merchandise as a condition of employment and also failed to reimburse employees for their mileage between Wet Seal business locations. The trial court denied class certification on the ground that common
Trial Court Erred In Failing To Certify Class Action For Unpaid Overtime And Meal-And-Rest Breaks
Bradley v. Networkers Int’l, LLC, 2012 WL 6182473 (Cal. Ct. App. 2012)
The three named plaintiffs in this case were among approximately 140 skilled workers retained by Networkers to provide repair and installation services at cell sites. Each worker was required to sign a standard contract, which stated that he or she was an independent contractor rather than an employee. The purported independent contractor
Trial Court Erred In Part In Failing To Certify Class Of Newspaper Home Delivery Carriers
Ayala v. Antelope Valley Newspapers, Inc., 2012 WL 4098995 (Cal. Ct. App. 2012)
Plaintiffs Maria Ayala, Rosa Duran and Osman Nuñez sought to certify a class of newspaper home delivery carriers in a lawsuit brought against Antelope Valley Newspapers, Inc. (“AVN”), alleging that AVN had improperly classified the carriers as independent contractors rather than employees in violation of California labor laws. The trial court