Seyfarth Synopsis: The Second Circuit held that courts must dismiss out-of-state plaintiffs from FLSA collective actions unless the defendant is “essentially at home” in the forum state or consents to the suit in that venue.
In a significant decision that will affect the scope of FLSA collective action litigation, the Second Circuit has held that courts may not adjudicate claims of out-of-state plaintiffs unless the defendant-employer is “essentially at home” in the forum state or consents to the suit there.
The case involves the interpretation of a 2017 Supreme Court decision, Bristol-Myers Squibb Co. v. Superior Court of California (“BMS”), and deepens a circuit split that may end up at the Supreme Court in the near future. The Second Circuit joins the Third, Sixth, Seventh, and Eighth circuits in applying BMS to FLSA collective actions, with the First Circuit being the lone circuit to disagree.
