Before the pandemic (remember then?), you may recall a case last year that drew headlines: Chip’s Family Restaurants was having issues with a class action lawsuit filed against the small chain by allegedly improperly deducting a tip credit from server earnings thereby paying those potential class members below the minimum wage for the performance of
Over the last 24 hours, there’s been a lot written about the Supreme Court’s decision yesterday in Wal-Mart Stores v. Dukes. Frankly, all of them are starting to say the same thing: The decision is going to hamper all class-action discrimination cases going forward.
But that statement tends to simplify the decision a bit too much. In my view, what the decision stands for is that it will be increasingly unlikely that the mega-class action (the one that covers an entire company) will be able to proceed without a very specific and tangible practice or policy that the plaintiffs can point too.
What types of things are we talking about? Well, it would be unlikely, but suppose a company had a mandatory retirement age of 60 but without a legitimate basis for doing so. In essence, it was a company-wide practice of discriminating against older workers. That type of class action will probably survive.…
Continue Reading Wal-Mart v. Dukes: What The Class-Action Decision Really Means for Employers
Back in March, I reported on the likelihood of a victory for Wal-Mart in an important class action case up at the U.S. Supreme Court.
This morning, the Supreme Court unanimously rejected the class action against the nation’s largest employer, saying, in essence, that the…