Employers Beware: Possible Changes May Be Coming To Class Action Rules

Rule 23 governs class action procedure in federal courts, and interpretation of that rule by the U.S. Supreme Court and lower federal courts drives risks and liabilities that employers face in high-stakes litigation. Being on the receiving end of a workplace class action can have dire consequences for a business. Careers of key company officials as well as market share and stock valuation are often on the line.

Rule 23 case law also evolves in another, yet often overlooked manner – through changes to the rule via amendments effectuated by theFederal Advisory Committee on CivilRules, the committee that evaluates and proposes changes to the Federal Rules of Civil Procedure for consideration by the U.S. Supreme Court. The Rule 23 Subcommittee to theAdvisory Committee on CivilRules is composed of federal judges who suggest possible amendments to the rule every few years. Though the work of the Rule 23 Subcommittee to theAdvisory Committee on CivilRules does not take place