Friday, March 17, 2006

N.D. Cal. Holds That State-Law Based Opt-Out Class Action Not Preempted by FLSA

BNA’s Class Action Litigation (Volume 07 Number 05, Fri., Mar. 10, 2006, Page 148, ISSN 1529-8000) is reporting on Bahramipour v. Citigroup Global Markets, Inc., 2006 WL 449132 (N.D.Cal. Feb 22, 2006):

The Fair Labor Standards Act does not preempt securities brokers from pursuing an opt-out overtime class action under state law even though they are alleging FLSA violations, a federal court in California ruled Feb. 22. . . .

Finding an opt-out class available under the California Unfair Competition Law (UCL)--which prohibits "unlawful, unfair or fraudulent" practices, including those covered by the FLSA . . . the Northern District of California said the congressional intentions of the FLSA collective action were not undermined by permitting a class action applying state law.

BNA Subscribers may read the full article on the case by clicking here.

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