Third Circuit Limits Ability to Certify Wage/Hour Class Actions – Making “Off-the-Clock” Matters Difficult to Certify and Likely Increasing Litigation of Wage/Hour Claims Against New Jersey Employers in State Courts

Simao, Sal - 300dpi
Salvador Simao

On Christmas Eve, the Third Circuit issued a decision restricting certification of wage/hour classes for off-the-clock cases and increasing the threshold for other wage/hour matters. See Ferreras v. American Airlines, Inc. (Dec. 24, 2019). While this decision may reduce the number of wage/hour class actions certified in the Third Circuit (which covers Pennsylvania, New Jersey, Delaware, and the Virgin Islands), it is predicted to cause an increase in the number of wage/hour class action filings in New Jersey state courts. As discussed in our previous legal alert, the recently enacted New Jersey Wage Theft Act by itself will undoubtedly spark an increase in New Jersey state court filings because of the significant increase in damages and lower burden of proof compared to the federal Fair Labor Standards Act (FLSA). The Third Circuit’s decision will likely result in even more state court wage/hour class action filings. Continue reading

You Can Skim Milk But You Cannot Skim Wages

Harkavy, Michelle - 300dpi
Michelle Harkavy

Executive Summary:    On July 26, 2018, the California Supreme Court ruled that Starbucks must pay employees for minutes, maybe even seconds, spent on off-the-clock “work” by determining that the Plaintiff’s alleged class action state wage claims are not barred by the de minimis doctrine. Continue reading