Exploring New Approaches to Unsettled Legal Questions

Tag: Fair Labor Standards Act

Bristol-Myers Squibb’s Impact on Collective Actions: Why the Tide Should Shift from Fischer and Towards Waters

by Isabelle Wechsler*

Despite the current weight of case law suggesting otherwise, the Supreme Court’s decision in Bristol-Myers Squibb v. Superior Court of California (“BMS”) should not apply to Fair Labor Standards Act (“FLSA”) collective actions. This Contribution argues that federal courts hearing FLSA claims are not required to exercise personal jurisdiction over defendants with respect to out-of-state opt-in FLSA plaintiffs’ claims. This Contribution first provides a brief background on the Supreme Court’s decision in BMS and describes how lower courts have uniformly limited BMS’s application to class actions but not FLSA collective actions. It then compares the text and history of FLSA collective actions and class actions to demonstrate that the same reasoning used to limit BMS’s application to class actions should extend FLSA collective actions. It also shows that FLSA-specific arguments, particularly in relation to mass actions, support this conclusion. Finally, this Contribution demonstrates that even if federal courts are required to exercise personal jurisdiction over FLSA opt-in plaintiffs’ claims, a proper reading of Federal Rule of Civil Procedure 4(k) reveals only Fifth Amendment, not Fourteenth Amendment, Due Process restrictions apply, and thus out-of-state opt-in plaintiffs’ claims remain within the reach of a federal court’s jurisdiction.

When Idling Is No Longer Idle Time: Regulating Fair Compensation for Rideshare Drivers

by Sania Chandrani*

As jurisdictions decide how to properly compensate rideshare app drivers on platforms like Uber and Lyft, they consider whether these workers are properly categorized as independent contractors or employees. With the designation of “employee” comes the protections of the Fair Labor Standards Act (“FLSA”)—minimum wage and hour regulations. Of their obligations as would-be employers, platforms contend that paying employees for time spent waiting to pick up a rider is untenable for their business model. This Contribution suggests that as states develop regulations that qualify drivers for some employee protections, courts will apply the same balancing test they do for employees when determining whether drivers’ wait time is compensable. After analyzing the prominent factors considered by courts, this Contribution argues that platforms exaggerate their concerns. Because only parts of drivers’ “idling time” would be compensable per the FLSA, regulations bringing drivers closer to employee status would not trigger a windfall for plaintiffs, but rather fairly compensate workers for time spent waiting for passengers using rideshare platforms.

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