Defending Against Employee Class Action Lawsuits

 Posted on December 16, 2024 in Employer Defense

In an employee class action lawsuit, one or more employees file a lawsuit on behalf of a "class" of employees alleging that certain employer's violations of the law harmed all members of the class. Class action lawsuits often seek significant monetary damages, have a high tendency to end in a financial settlement, and can have a high profile and cause reputational damage. That is why employers who face the threat of a class action lawsuit should consult with an attorney experienced in defending employee class action lawsuits in Illinois.

Common Employer Class Action Lawsuits

These are a few common types of employee class action lawsuits and what they claim. Wage and hour lawsuits allege violations of wage and hour practices under Illinois law and federal law such as the Fair Labor Standards Act (FLSA). Discrimination lawsuits allege that an employer discriminated against employees on the basis of religion, sex, or another protected status. A claim for benefits violation accuses the employer of violating employees' legal rights to benefits, usually under federal law. Employee misclassification claims allege that the employer systematically misclassified employees, for example labelling employees as independent contractors.

Legal Process

Most employee class action lawsuits follow a similar procedure. The employer/defendant can ask the court to dismiss the lawsuit:

• Complaint is filed: One or more "named plaintiffs" file the lawsuit seeking to ratify a class of employees.  

• Class certification: If certification is granted, the case proceeds. If it is not, that is the end of the lawsuit unless employees appeal.

• Notice to class members: The employees’ lawyer will provide notice to potential class members.

• Discovery: The parties gather and review evidence.

• Settlement negotiations: These can be ongoing throughout the case, with the goal of coming to an agreement that ends the litigation.

• Trial: If the parties do not reach an agreement, the case goes to trial.

• Judgment: A decision is made on the case and remedies may be awarded.

• Distribution: The judgment or settlement amount is distributed among employee class members.

Common Class Action Defenses 

The strategy for defending a class action lawsuit will depend on the claim and the facts of the case. There are a few ways commonly used defenses to class certification. A company faced with a class action lawsuit can argue that it is not legally possible to certify a class based on the facts of the lawsuit. It can also dispute the legal and factual merits of the allegations made in the complaint. Finally, it may also seek an early settlement that minimizes the financial impact on the company.

Contact a Schaumburg, IL Employment Attorney

If your business has been hit with an employee class action lawsuit, an experienced Schaumburg, IL employment lawyer can represent you and build a strong defense. At The Miller Law Firm, P.C., we represent employers against employee class action lawsuits. Protect your business by contacting attorney Richard J. Miller at 847-995-1205 today.