Proactive Defense and Compliance

We represented a hospitality industry employer in resolving a multi-location class/collective action under the Fair Labor Standards Act and developed updated employment policies to avoid future litigation.

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Challenge

Our client, a hospitality industry employer, was faced with a multi-location class/collective action. A group of former employees brought a federal court action on behalf of an entire class of employees at two of its affiliated companies. They were seeking years of allegedly unpaid overtime under the Fair Labor Standards Act (FLSA) and state law.  Even technical FLSA violations can potentially lead to significant damages and attorneys’ fees.  If the court approved the class action, claims could have been brought on behalf of all similarly situated employees at both companies.

Solution

Through aggressive discovery, we limited the action to fewer than ten plaintiffs. We significantly reduced the value of each claim based on inconsistent testimony, for pre-trial resolution at a fraction of the potential liability.  We advised the client on pay and record keeping best practices going forward to avoid similar claims in the future.