collective action

Issues

In a putative collective action, Laura Symczyk alleged that Genesis HealthCare Corporation violated the Fair Labor Standards Act by automatically deducting break time from her and other employees’ pay, regardless of whether they performed compensable work during their breaks. Before any other plaintiffs joined the action, Genesis made an offer of judgment for full relief of Symczyk’s claims. Symczyk did not accept the offer, but the district court dismissed the case because the offer of judgment left Symczyk without a personal stake in the litigation. Symczyk argues that she continues to have a personal stake and that the interests of plaintiffs yet to join the action creates jurisdiction. Genesis argues that a complete offer to satisfy a lone plaintiff’s claim renders the case moot. In resolving the question presented, the Supreme Court will decide whether an unaccepted offer of judgment can render a case moot and whether courts may consider the interests of unnamed, hypothetical parties in determining whether the parties have a personal stake in the litigation. The decision will affect collective-action trial practices for both plaintiffs and defendants, including plaintiffs’ use of the discovery process to join class members and defendants’ use of individual offers of judgment to forestall or avoid collective actions.

Questions as Framed for the Court by the Parties

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Issues

In this case, the Supreme Court will determine whether class certification or collective action may proceed under Federal Rule of Civil Procedure 23(b)(3) or the Fair Labor Standards Act (FLSA), when liability determinations and damage calculations will turn on statistical analysis that assumes all class members, regardless of actual differences between them, are identical to a statistical average. See Petition for Writ of Certiorari, Tyson Foods, Inc. v. Peg Bouaphakeo, et al., No. 14–1146, at i.  The Court will also consider whether Rule 23(b)(3) or the FLSA permits class or collective action when the putative class contains uninjured members without legal rights to damages. See id. Tyson argues that the use of statistical averages masks differences between class members that not only create individual questions of law and fact, but also result in uninjured class members being awarded damages. See Brief for Petitioner, Tyson Foods, Inc. at 18-19. Additionally, Tyson argues that the use of statistical averages also prevents it from raising defenses that it would otherwise be entitled to employ. See id. at 33. But Bouaphakeo claims that Tyson’s failure to keep statutorily required records of the amount of time that employees worked necessitated the use of statistical analysis, and such use was necessary and proper to prove liability and damages through a just and reasonable inference. See Brief for Respondents, Peg Bouaphakeo, et al. at 33-35. Bouaphakeo further contends that uninjured class members were not awarded damages, and that Tyson was not prevented from raising defenses. Id. at 57-60. The Court’s decision may affect litigation costs for businesses, economic growth, and the use of statistical analysis in class action proceedings. See Brief for Amici Curiae Chamber of Commerce of the United States of America et al. (“Chamber”), in Support of Petitioner at 20–21, 23; Brief of Amicus Curiae American Independent Business Alliance, in Support of Respondent at 3–6; Brief of Amici Curiae Civil Procedure Professors, in Support of Respondents at 9–11.

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