Sixth And Eighth Circuits Reshape FLSA Collective Action Litigation

Seyfarth Synopsis:  Since the Supreme Court's 2017 decision in Bristol-Myers Squibb Co. v. Superior Court, federal district courts around the country have wrestled with whether they may exercise personal jurisdiction over employers as to FLSA claims brought by people who worked and were paid outside of the forum state.  On August 17 and 18, the Sixth and Eighth Circuits said no.  The result is that, at least within those circuits, an employer cannot be subject to a multi-state FLSA collective action unless it is brought in a court in the employer's home state.

The FLSA allows individuals to bring claims for minimum wage or overtime violations "for and in behalf of" themselves and other "similarly situated" employees.  These "collective actions" often involve relatively few resident plaintiffs and a multitude of out-of-state employees.  Where their claims may be brought became an open question after the Supreme Court's 2017 decision in Bristol-Myers.