How do you settle a class action lawsuit?

Settling a class action lawsuit poses unique challenges and imposes specific obligations on the parties.

1. Seek Preliminary Approval of Settlement.
2. Provide Class Notice to Absent Class Members.
3. Provide CAFA Notice to Appropriate Government Officials.
4. Anticipate Opt-Outs and Objectors.
5. Seek Final Approval of Settlement.

How long do class action settlements take?

Some class action lawsuits can take as little as a few months and as long as several years. These kinds of cases can typically take around two or three years to be resolved, while others can take even longer. When court rulings are appealed, the process gets further prolonged.

Can you settle an FLSA claim?

Settling claims requires approval. One of the most curious characteristics of the Fair Labor Standards Act (FLSA), the federal law that imposes minimum wage and overtime rules, is that claims can only be formally settled through the Department of Labor or with court approval.

What is a class action settlement notice?

A class action notice is a form of written communication, such as a postcard, email, letter, newspaper or magazine ad, informing individuals of a filed or pending case and the legal rights they may exercise at that time. So, you received a postcard in the mail that a class action lawsuit has been filed.

Who gets the money in a class action lawsuit?

Contrary to popular belief, class action settlements are not divided among class members evenly. Lead plaintiffs receive the most money in class action lawsuits. They typically have the worst injuries and the highest damages.

What is FLSA claim?

California employees may file a wage and hour lawsuit against employers for failing to pay the minimum wage or failing to pay overtime. The FLSA provides a right of action for violations of federal labor laws. This includes failure to pay non-exempt employees the federal minimum wage or failure to pay for overtime.

What claims Cannot be waived by law?

Certain claims cannot be released, including claims for earned wages, reimbursement for business expenses, unemployment and COBRA benefits, and worker’s compensation benefits (except if approved by the Workers’ Compensation Appeals Board).

Why did I get a notice of class action settlement?

If you received a class action notice in the mail, this simply means that your legal rights may be affected by a lawsuit that was recently filed or settled. Notices are typically sent after a case has settled and will provide instructions on how to claim part of the settlement.

How is a settlement approved in a FLSA case?

To be approved, the court must deem the settlement to be “fair and reasonable.” “Fairness hearings” are often conducted, similar to the process utilized in a traditional class action lawsuit where the court can ask questions and the plaintiff can lodge objections.

Can a settlement of a class action lawsuit be confidential?

The settlement of a lawsuit involving a single or several plaintiffs (as opposed to larger class or collective actions) would ordinarily contain a provision requiring the plaintiffs to keep the terms of the settlement confidential.

What happens if you reject a FLSA judgment?

If declined, and the plaintiff does not recover a judgment for more than the amount offered, then the plaintiff may not recover costs incurred after the date of the rejected offer. Note that a plaintiff would still be entitled to recover all reasonable attorneys’ fees, even those incurred after rejection of the Offer of Judgment.

How does FLSA differ from harassment and discrimination cases?

This differs from harassment and discrimination cases, for example, where, through use of a reporting procedure an employer may be insulated from liability if an employee fails to lodge a complaint.