Insights

Washington – June 6, 2024: Crowell & Moring earned 78 rankings for 67 lawyers, as well as 41 national and statewide practice area rankings, in the Chambers USA 2024 guide. The rankings are driven by independent interviews of clients and lawyers at peer firms.

In Clark v. A&L Homecare and Training Center, LLC, Nos. 22-3101/3102, a split three-judge panel for the U.S. Court of Appeals for the Sixth Circuit held that notice to potential plaintiffs should only be issued if lead plaintiffs show a “strong likelihood” that such absent employees are “‘similarly situated’ to the plaintiffs themselves.” In so holding, the Sixth Circuit joined the Fifth Circuit in rejecting the long-standing “lenient” two-step collective action certification process.  The Sixth Circuit declined, however, to apply the Fifth Circuit’s approach and adopted a “strong likelihood” standard.  The Clark decision, issued on May 19, 2023, will significantly impact FLSA collective action litigation in favor of employers in federal district courts in Ohio, Michigan, Kentucky, and Tennessee.  The widening Circuit split ripens this issue for review by the Supreme Court of the United States.

On February 15, 2023, the Ninth Circuit held that AB 51 is preempted by the Federal Arbitration Act (“FAA”) and consequently California employers are free to require employees to sign arbitration agreements as a condition of employment. See Chamber of Com. of the United States of Am. v. Bonta, No. 20-15291, 2023 WL 2013326 (9th Cir. Feb. 15, 2023). AB 51 made it a criminal offense for an employer to do so, whether for applicants or existing employees.

The Supreme Court gave employers some good news this week in deciding that time spent by workers going through a theft-prevention security screening at the end of their shifts need not be compensated under the Fair Labor Standards Act. In a 9-0 ruling, the Court sided with the employer, determining that post-shift security screening procedures were not "integral and indispensable" to the workers' principal duties. The Court also clarified the standard to determine whether pre- and post-shift activities must be compensated under the FLSA.

Class actions are alive and well in the world of employment law. Much is happening, and there’s plenty more to come, says Rebecca Springer, a Crowell & Moring partner who serves as talent and inclusion lead in the firm’s Labor and Employment Practice.

Please join us for the next edition of Third Thursday – Crowell & Moring’s Labor and Employment Update, a webinar series dedicated to helping our clients stay on top of developing law and emerging compliance issues.

Please join us for the next edition of Third Thursday – Crowell & Moring’s Labor and Employment Update, a webinar series dedicated to helping our clients stay on top of developing law and emerging compliance issues.

Please join us for the next edition of Third Thursday – Crowell & Moring’s Labor and Employment Update, a webinar series dedicated to helping our clients stay on top of developing law and emerging compliance issues.