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Litigating California Wage & Hour and Labor Code Class Actions

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cases, the Dukes discussion of commonality, <strong>and</strong> its tightening of the requirements to<br />

establish that prong of the Rule 23 test, will be directly applicable.<br />

Second, Dukes should lead courts to narrow their application of the “similarly situated”<br />

requirement in collective actions under FLSA section 216(b). Most courts faced with<br />

§216(b) collective actions now use a two-stage approach to certification. In the first stage,<br />

plaintiffs are required to show that the named plaintiffs <strong>and</strong> other potential party plaintiffs<br />

are “similarly situated.” Courts have struggled with the meaning of “similarly situated” for<br />

almost 65 years because the statute does not define the phrase, <strong>and</strong> the courts have not<br />

settled on a uniform definition. However, courts have consistently approached this<br />

question by examining whether common factors are present, such as the geographic scope<br />

<strong>and</strong> job duties of the potential party plaintiffs, as well as whether the individuals were<br />

subject to similar practices or policies.<br />

The Similarly Situated And Commonality St<strong>and</strong>ards Are Not So Different<br />

Most courts have set a very low bar for plaintiffs to clear at this stage in order to obtain<br />

“conditional” class certification. However, inquiries under the similarly situated st<strong>and</strong>ard are<br />

comparable to those that the Dukes Court said must be tightened under the commonality<br />

st<strong>and</strong>ard of Rule 23(a)(2). In fact, a number of courts have equated “similarly situated” to<br />

the commonality requirement of Rule 23(a)(2). Dukes should thus compel lower courts to<br />

pay closer attention to the disparities that often exist among members of a putative FLSA<br />

collective – such as variations in supervisors, departments, facilities, divisions, <strong>and</strong> regions<br />

– because the Court held that the “dissimilarities” in the proposed class, not the common<br />

questions raised, have the most potential to determine whether classwide resolution of a<br />

matter is permissible.<br />

The final certification stage of a § 216(b) action requires a more stringent judicial analysis<br />

than the first, <strong>and</strong> typically comes after discovery has been largely completed. At this<br />

stage, courts assess whether the differences among the party plaintiffs (all of whom will<br />

have opted in by this point following issuance of court-approved notice) outweigh their<br />

similarities. If so, the action should be decertified. This “differences” inquiry runs h<strong>and</strong>-inh<strong>and</strong><br />

with the Supreme Court’s emphasis in Dukes on dissimilarities in the Rule 23 class<br />

context.<br />

The Dukes Effect Could Create An Early Evidentiary Hurdle For Plaintiffs<br />

The effects of Dukes will likely be seen in all types of wage-<strong>and</strong>-hour litigation, whether the<br />

alleged violation relates to minimum wages, overtime or other legal protections, <strong>and</strong><br />

whether the claim alleges exempt status misclassification, off-the-clock work, a violation of<br />

technical pay practice requirements under state law, or independent contractor<br />

misclassification. For example, while differences in the application of pay policies from one<br />

Seyfarth Shaw LLP | www.seyfarth.com <strong>Litigating</strong> <strong>California</strong> <strong>Wage</strong> & <strong>Hour</strong> <strong>Class</strong> <strong>Actions</strong> (12th Edition) 84

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