Third Circuit Ruling Makes It Easier For Employers To Settle Hybrid Wage And Hour Actions

Takeaways

• In Lundeen v. 10 W. Ferry St. Operations, the court held that in settling a Rule 23 class action, plaintiffs can waive the FLSA rights not asserted by class members.
• Employers litigating in Delaware, New Jersey, Pennsylvania, and the U.S. Virgin Islands may be able to settle "hybrid" actions with some assurance that class members who did not opt into the FLSA case cannot later seek further relief for alleged wage and hour violations.
• The holding applies only to settlements in federal courts within the Third Circuit. No other federal appeals court has addressed this issue head-on. Employers should be aware of the jurisdictional landscape and the potential for a different outcome depending on the forum.