Seyfarth Synopsis: The Third
Circuit held that Section 216(b) of the FLSA does not prohibit the
release of FLSA claims in an opt-out class-action
settlement.
Settling "hybrid" cases in the Third Circuit just
became easier for parties asserting claims under both federal and
state wage-and-hour laws.
By way of background, the
FLSA provides, in relevant part, that "[n]o employee shall
be a party plaintiff to [a FLSA action] unless he gives his consent
in writing to become such a party and such consent is filed in the
court in which such action is brought." 29 U.S.C. §
216(b). Thus, similarly-situated employees do not become plaintiffs
in a FLSA case unless they file a consent in writing affirmatively
agreeing to become a party-plaintiff. In contrast, in a certified
class action under
Rule 23 of the Federal Rules of Civil Procedure, class members
are part of the class unless they opt out of the
litigation.
