Sandoz v. Cingular Wireless LLCSandoz v. Cingular Wireless LLC
In this case, we deal with the difficult question of when an employer can moot a purported collective action under the Fair Labor Standards Act (“FLSA”),
I. FACTUAL AND PROCEDURAL BACKGROUND
Sandoz worked for Cingular as a part-time retail sales consultant in Lafayette, Louisiana, from October 10, 2004, until she voluntarily resigned on October 5, 2005. On April 23, 2007, Sandoz brought suit against Cingular in Louisiana state court, alleging that the way in which Cingular paid its part-time employees for excess time worked violated the minimum wage provisions of the FLSA.
See
On September 6, 2007, twenty-four days after removing the case to the district court and a little over a month after receiving Sandoz’s petition, Cingular made Sandoz an offer of judgment under
II. JURISDICTION AND STANDARD OF REVIEW
This court has jurisdiction pursuant to
III. DISCUSSION
A. Mootness
Under Article III of the U.S. Constitution, a federal court may adjudicate only “cases” or “controversies.”
The issue in this appeal is whether a FLSA claim becomes moot when the purported representative of a collective action receives an offer that would satisfy his or her individual claim and no other plaintiffs have opted in to the collective action. Therefore, we must determine whether Sandoz represents only herself in this claim or if she also represents other similarly-situated employees in a FLSA collective action.
Section 216(b) of the FLSA provides, [a]ny employer who violates the provisions of [the FLSA] shall be liable to the employee or employees affected in the amount of their unpaid minimum wages, or their unpaid overtime compensation, as the case may be, and in an additional equal amount as liquidated damages .... An action to recover the liability prescribed in [this section] may be maintained against any employer (including a public agency) in any Federal or State court of competent jurisdiction by any one or more employees for and in behalf of himself or themselves and other employees similarly situated. No employee shall be a party plaintiff to any such action unless he gives his consent in writing to become such a party and such consent is filed in the court in which such action is brought.
The Supreme Court has explained the history behind the opt-in provision of the FLSA:
In 1938, Congress gave employees and their “representatives” the right to bring actions to recover amounts due under the FLSA. No written consent requirement of joinder was specified by the statute. In enacting the Portal-to-Portal Act of 1947, Congress made certain changes in these procedures. In part responding to excessive litigation spawned by plaintiffs lacking a personal interest in the outcome, the representative action by plaintiffs not themselves possessing claims was abolished, and the requirement that an employee file a written consent was added. See 93 Cong. Rec. 538, 2182 (1947) (remarks of Sen. Donnell). The relevant amendment was for the purpose of limiting private FLSA plaintiffs to employees who asserted claims in their own right and freeing employers of the burden of representative actions.
Hoffmann-La Roche Inc. v. Sperling,
In
LaChapelle v. Owens-Illinois, Inc.,
There is a fundamental, irreconcilable difference between the class action described byRule 23 and that provided for by FLSA [§ 216(b) ]. In aRule 23 proceeding a class is described; if the action is maintainable as a class action, each person within the description is considered to be a class member and, as such, is bound by judgment, whether favorable or unfavorable, unless he has “opted out” of the suit. Under [§ 216(b) ] of FLSA, on the other hand, no person can become a party plaintiff and no person will be bound by or may benefit from judgment unless he has affirmatively “opted into” the class; that is, given his written, filed consent.
Id.
at 288. The court continued, “
The Eleventh Circuit is the only other circuit that has addressed the same type of scenario currently before us. In
Camerortr-Grant,
the court considered whether a named FLSA plaintiff, “whose personal claims are settled and now moot, may appeal the district court’s order denying his motion to notify other potential plaintiffs of this FLSA action.”
Several district courts also have held that a named plaintiff in a FLSA collective action did not represent the interests of similarly-situated employees who had not yet opted in. The facts of
Rollins v. Systems Integration, Inc.,
No. 4:05-CV-408,
The district court here concluded that Cingular’s
Here, the district court held that based on
Geraghty
and
Roper,
allowing a defendant to “pick off’ the representative plaintiff in a potential FLSA collective action by making an offer of judgment would frustrate the objective of the statute. The district court also cited
Hoffmann-La-Roche, Inc.,
Generally speaking, we agree with the district court’s concerns. A ruling that
B. Relation Back
Sandoz argues, however, that allowing a defendant to moot a collective action in this manner would violate the policies behind the FLSA because a plaintiff never would be able to certify a collective action. We agree that the mootness principles discussed above would provide an incentive for employers to use
In Sosna v. Iowa, the Supreme Court stated,
[tjhere may be cases in which the controversy involving the named plaintiffs is that it becomes moot as to them before the district court can reasonably expected to rule on a certification motion. In such instances, whether the certification can be said to “relate back” the filing of the complaint may depend upon the circumstances of the particular case and especially the reality of claim that otherwise the issue would evade review.
[t]o deny the right to appeal simply because the defendant has sought to “buy off’ the individual private claims of the named plaintiffs would be contrary to sound judicial administration. Requiring multiple plaintiffs to bring separate actions, which effectively could be “picked off’ by a defendant’s tender of judgment before an affirmative ruling on class certification could be obtained, obviously would frustrate the objectives of class actions; moreover it would invitewaste of judicial resources by stimulating successive suits brought by others claiming aggrievement.
This court also has previously discussed the dangers of allowing a defendant to “pick off’ class representatives by making an offer of judgment to the named plaintiff:
By tendering to the named plaintiffs the full amount of their personal claims each time suit is brought as a class action, the defendants can in each successive case moot the named plaintiffs’ claims before a decision on certification is reached. A series of individual suits, each brought by a new named plaintiff, could individually be “picked off’ before class certification .... The fact remains that in those cases in which it is financially feasible to pay off successive named plaintiffs, the defendants would have the option to preclude a viable class action from ever reaching the certification stage.
Zeidman v. J. Ray McDermott & Co.,
The Third Circuit applied these principles to conclude that “[ajbsent undue delay in filing a motion for class certification ... where a defendant makes a
Although these cases arose in the
The proper course, therefore, is to hold that when a FLSA plaintiff files a timely motion for certification of a collective action, that motion relates back to the
Here, Cingular made its offer of judgment about a month after receiving San-doz’s complaint. Other courts have found that there must be some time for a plaintiff to move to certify a collective action before a defendant can moot the claim through an offer of judgment.
See, e.g., Robile v. Celestica Corp.,
No. 06-2934,
However, Sandoz did not file her motion to certify until thirteen months after she filed her complaint, and relation back is warranted only when the plaintiff files for certification “without undue delay.”
See Weiss,
Although in theory a
VACATED AND REMANDED.
Notes
. Sandoz sued Cingular. Wireless LLC, Cingu-lar Wireless Employee Services LLC, and AT&T Mobility LLC. The Cingular entities are now known as AT&T Mobility LLC. For simplicity, we refer to all of the Defendants-Appellants as "Cingular.”
. More specifically, collective actions typically proceed in two stages. First, the plaintiff moves for conditional certification of his or her collective action.
See Mooney v. Aramco Servs. Co.,
. The precise factual pattern of
Cameron-Grant,
which involved a voluntary settlement and dismissal of all of the plaintiff's claims— as opposed to a plaintiff's refusal of a
. We note that two additional cases that the district court cited in support of its ruling are not on point. In
Higueros v. New York State Catholic Health Plan, Inc.,
.
See Zeidman,
. On appeal, Sandoz also asserts that her case is not moot because she sought equitable relief based on alleged FLSA disclosure violations. However, Sandoz cannot receive equitable relief for this type of claim under the FLSA.
See