A recent unpaid overtime case originating in Tennessee placed into conflict two competing legal concepts: an employee’s right to pursue collective action litigation under the Fair Labor Standards Act and an employer’s right to obtain employees’ waiver of their right to sue under the terms of contractual arbitration agreements. This case highlights some of the complexities that can arise in FLSA cases and the importance of retaining skilled Tennessee employment counsel, who can help guide you through the sometimes complicated process of navigating the procedural pathways required in taking on your case.
The lead plaintiff in this collective action case was a woman named Arvion. Arvion worked for two years as an hourly employee for a national chain of truck stops. Arvion’s case, like many unpaid overtime actions, involved allegations that the employer altered her time sheets to reduce the number of reported hours she had worked in a week, thereby dodging its obligation to pay her overtime. Furthermore, she alleged that the employer rolled back the number of reported hours of its hourly employees (in order to avoid paying overtime) as a matter of policy at locations across the country.
FLSA collective actions operate somewhat similarly to class actions. A lead plaintiff brings the case, identifies a group of employees who were harmed, and then contacts all of the members of that group to give them the opportunity to “opt in” to the collective action. (FLSA collective actions differ from class actions in that, unlike class actions in which class members must proactively opt out of the class action case, members of the group of similarly situated employees must proactively opt in to a collective action.)