Supreme Court Decision in Genesis v. Symczyk Creates Uncertainty for Workers

(Washington, D.C.) Today, the Supreme Court issued a 5-4 decision in Genesis Healthcare Corp. v. Symczyk, ruling that when an employee seeks to bring a class action under the Fair Labor Standards Act (FLSA) and her own claim becomes “moot” before other employees have had an opportunity to join the case, the case will end, providing no relief for the other employees on whose behalf she filed suit. The Supreme Court did not rule on whether an employer’s offer to settle with the original plaintiff will moot a case, however, making it difficult to predict what the effects of the Court’s ruling will be on FLSA class actions.

Plaintiff Laura Symczyk, a nursing home worker, alleged that her employer was committing wage theft against her and other employees by failing to pay them if they did work during their lunch period. In its amicus brief, the National Women’s Law Center (NWLC) and the Service Employees International Union urged the Supreme Court to rule that the law does not permit companies to short-circuit workers’ ability to come together to enforce their workplace rights by offering to settle with the original plaintiff before other employees harmed by a company practice have had an opportunity to join the lawsuit. The Supreme Court held that if the original plaintiff’s claim becomes moot before other employees have had an opportunity to join the case, then the case must end, but did not decide whether an employer’s settlement offer to the original plaintiff can moot a case. 

The following statement is from NWLC Co-President Marcia D. Greenberger:

“As our brief argued and we strongly believe, collective suits lie at the core of enforcement of the FLSA, as well as the Equal Pay Act (EPA), which relies on the same enforcement mechanisms. Today, the Supreme Court side-stepped the question of whether defendants can end a collective action by offering to settle with one plaintiff before other employees have had an opportunity to join the case. Going forward, lower courts should recognize that a mere offer to settle does not moot a plaintiff’s case, particularly in situations such as Laura Symczyk’s, where the plaintiff has rejected the employer’s offer and therefore received no relief. If courts allow employers to duck their obligations under the FLSA and the EPA by picking off a lead plaintiff through a settlement offer, it would have the effect of making wage and hour violations and pay discrimination much more difficult to challenge. When enforcement of these fundamental protections is undermined, women workers, and in particular low-wage women workers like Laura Symczyk, will be harmed.”

For more information, visit: http://www.nwlc.org/resource/genesis-healthcare-corp-v-symczyk-important-case-low-wage-women-workers-and-future-fair-lab

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