Employment law pop quiz #13 – FLSA & jurisdiction

Can I opt in to a FLSA collective action without proving the court has personal jurisdiction over MY claim?

"No," according to a recent 7th Circuit decision. A court overseeing a collective action must secure personal jurisdiction over each plaintiff's claim, whether representative or opt-in, individually. Vanegas v. Signet Builders (7th Cir 08/16/2024) [PDF].

A Wisconsin resident brought a Fair Labor Standards Act collective action in federal court in Wisconsin against a Texas-based employer. He had hoped that other employees from various states outside of Wisconsin would opt in, to establish a nationwide collective action.

This will now be practically impossible. Each opt-in plaintiff has to prove that the court has personal jurisdiction over his or her claim.

The 7th Circuit relied on Bristol-Myers Squibb v. Superior Ct, 582 US 255 (2017). The only difference was that Bristol-Myers involved state court jurisdiction. But a federal district court in Wisconsin has no more extra-territorial jurisdiction than a Wisconsin state court would have.

FLSA collective actions are different from class-actions. In a class-action, the class itself is essentially the plaintiff. But FLSA collective action is no more than a "consolidation of individual cases, brought by individual plaintiffs."

One judge dissented, arguing that this outcome is not mandated by Supreme Court precedent or personal jurisdiction law.

Your results may vary. If you have this issue, consult a good employment lawyer.
(Not me, I'm an arbitrator.)