New York Federal Court Decertifies FLSA Class-Action Lawsuit
On May 12, 2011, in Zivali v. AT&T Mobility, the Southern District of New York decertified an FLSA class because the plaintiffs were unable to demonstrate a class-wide illegal policy or practice. The court found that the plaintiffs were not "similarly situated" for purposes of a FLSA collective action, and dismissed all of the claims except those of the original plaintiff.
To give some background on procedure, New York federal courts generally use a two-step procedure when dealing with FLSA collective actions. "In the first step, the court authorizes plaintiffs to send out notices to potential opt-in plaintiffs who may be similarly situated to the named plaintiffs with respect to the FLSA violation alleged." Capsolas v. Pasta Resources, Inc., 2011 WL 1770827, 2 (S.D.N.Y. 2011). The burden for demonstrating that potential plaintiffs are "similarly situated" is very low at the notice stage. A plaintiff need make only a "modest factual showing" that he and potential collective action members were victims of "a common policy or plan that violated the law."
The second stage, called the "decertification stage," typically takes place after discovery has been completed and after the defendant has filed a motion for decertification. This second and more stringent review of the "similarly situated" standard is undertaken to ensure that having the case proceed to trial as a collective action, as opposed to individual actions, is appropriate. See Indergit v. Rite Aid Corp., 2010 WL 2465488 (S.D.N.Y. 2010).
In Zivali, the plaintiff, a nonexempt retail employee, alleged that AT&T failed to pay wages and overtime compensation, in violation of the FLSA and the New York Labor Law. He specifically claimed that needing supervisor approval for overtime, having to work through meal periods, and having to work "off-the-clock" made it difficult to capture all of his hours in the company's electronic time-keeping system.
In 2009, applying the lower standard, the court "conditionally" certified the class of all similar employees nationwide. After notices were sent out, over 4,100 plaintiffs ultimately opted into the lawsuit. Following discovery, AT&T made a motion for decertification.
In it's May 12, 2011 decision, applying the higher, second-stage standard, the court decertified the class, holding that the company's policies and electronic time-keeping system were "lawful under the FLSA, and plaintiffs have failed to show that these lawful policies are consistently violated in practice such that it would be possible to generalize across the 4,100 opt-in plaintiffs in this case." The court found that each employee's situation was different, depending upon the specific manager and location. Because there was no overarching policy that violated the FLSA, the court held that "resolution of the many fact-specific issues in this case would essentially require 4,100 mini-trials . . . Such a result is the antithesis of collective action treatment and would overwhelm the judicial system and eliminate any judicial efficiency that might be gained."
If you believe that you're not being properly compensated for all your time, it's important to speak with a New York wage and hour attorney to determine whether your employer's wage and/or overtime policy violates the law.

