The application of a key Supreme Court decision remains an important issue for multi-state employers defending federal collective action wage and hour claims – but are we any closer to getting clarity on what remains a frustrating patchwork standard? Many courts that have applied the 2007 SCOTUS decision in Bristol-Myers Squibb Co. v. Superior Court of California (BMS) in Fair Labor Standards Act (FLSA) cases have recognized the inherent problems associated with out-of-state plaintiffs’ efforts to “forum shop” and file a lawsuit in a state more favorable to employees. Another problem that courts face: plaintiffs who attempt to significantly expand the scope of their claims beyond state borders despite the lack of any meaningful connection with the state where the lawsuit is filed. Are there defenses available for employers – and is there a solution in sight?
Drawing Lines: Where Do Courts Stand On Permitting FLSA Collective Actions Involving Out-Of-State Plaintiffs?