The United States Supreme Court has granted review of a decision by a lower court on the issue of mootness in class actions. The case, Genesis Healthcare Corp. v. Symczyk, No. 11-1059, concerns an action taken under the Fair Labor Standards Act (FLSA), and the question of whether a case becomes moot when the lone plaintiff receives an offer from the defendants to satisfy all the plaintiff’s claims.
The FLSA sets out rules about to minimum wages and other employment conditions. It also says that an employee may file a collective action against his or her employer seeking double damages and attorney’s fees for violations of the FLSA. Under the system established by US Congress, if the initial plaintiff establishes to the court’s satisfaction that the claim presents issues common to other employees, the court will conditionally certify the case and allow judicial notice of the case to be sent to other employees along with an opportunity to opt-in as plaintiffs.
The Genesis Healthcare case concerns a collective action application taken by a nurse against her former employer. She alleged that the employer had a nationwide policy of requiring nurses to work through their lunch breaks. However, before she could seek conditional certification from the court to allow judicial notice to be sent to other employees (ie, approval to proceeding with the collective action), the employer made an offer which would provide her with complete relief. Although she refused the offer, the lower court deciding the issue held that the case had become moot due to the employer's offer. The US Court of Appeals for the Third Circuit reversed this decision. It held that an employer could not avoid a collective action in this manner and a plaintiff should be given a reasonable opportunity to seek conditional certification and join others to the claim. The employer then petitioned the Supreme Court for review of this decision, arguing that the decision deprived employers of a reasonable means to avoid burdensome and protracted litigation. The petition was granted and the case will be heard in coming months.