7th Cir. Sets Class Notice Rule for Workers in Arbitration Pacts

Facebook Inc. employees who signed arbitration agreements may receive notices of their right to pursue unpaid overtime claims as part of a proposed class, if requirements newly established by the Seventh Circuit are met.

Workers who agreed to arbitrate employment disputes may be notified of a Fair Labor Standards Act collective action where a plaintiff challenges an employer’s assertion that a valid arbitration pact exists, and the employer fails to prove that a potential class member entered into such an agreement, the U.S. Court of Appeals for the Seventh Circuit ruled in an issue of first impression.

This issue stems ...