Tyson Foods, Inc. v. Bouaphakeo, et al.
Issues
May a class be certified under Federal Rule of Civil Procedure 23(b)(3) and collective action taken under the Fair Labor Standards Act when individual employee class members differ as to the amount of compensable time worked? Additionally, is the use of statistical analysis to prove liability and damages proper in that situation?
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.
Questions as Framed for the Court by the Parties
1. Whether differences among individual class members may be ignored and a class action certified under Federal Rule of Civil Procedure 23(b)(3), or a collective action certified under the Fair Labor Standards Act, where liability and damages will be determined with statistical techniques that presume all class members are identical to the average observed in a sample.
2. Whether a class action may be certified or maintained under Rule 23(b)(3), or a collective action certified or maintained under the Fair Labor Standards Act, when the class contains hundreds of members who were not injured and have no legal right to any damages.
Petitioner Tyson Foods, Inc. (“Tyson”) operates and manages meat-processing facilities across the country, including a facility in Storm Lake, Iowa. See Bouaphakeo, et al. v. Tyson Foods, Inc., 765 F.3d 791, 794 (8th Cir.