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Schaumburg employment defense attorneyBusinesses must follow certain standards and procedures in order to remain open. A class action lawsuit is a legal claim made by employees who are seeking to collectively receive compensation from an employer for the same problem. This type of case can be in response to a faulty or defective product. A collective action is a slightly different procedure used in cases under the Fair Labor Standards Act, the Equal Pay Act, and the Age Discrimination in Employment Act. The Fair Labor Standards Act (FLSA) of 1938 is a comprehensive U.S. labor law that creates the right to a minimum wage and overtime pay when employees work more than 40 hours in a week. It also prohibits the employment of minors in “oppressive child labor.” Companies must uphold these guidelines or risk incurring penalties or legal action.

Class Action

Class action lawsuits may be brought in federal court if the claim pertains to federal law or they meet specific criteria. A class action lawsuit automatically assumes an employee is a part of the affected group unless he or she “opts out.” This can be done by signing a document stating that he or she does not want to participate.

A class action lawsuit is initiated when one or more named plaintiffs file a claim against the defendant(s), all of whom suffered the same injury or damages. Once the complaint is filed, the named plaintiff(s) must file a motion for class certification. The defendants may object to the motion for class certification based on several factors.

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Illinois employment lawyerEmployment law is complex and can include many different types of lawsuits, including class action and collective action lawsuits. A class action lawsuit is a single lawsuit that is taken to court to represent a group of employees who have all experienced the same alleged actions taken by the employer. A class action lawsuit is typically used when it would be impractical to take each individual case to court. Instead, an attorney or a group of attorneys is used to represent all employees who are involved in the lawsuit. Protecting yourself as a business is extremely important if you find yourself the target of a class action employment lawsuit.

What Is the Difference Between a Class Action and Collective Action Lawsuit?

These two types of lawsuits are similar to each other, though they do differ in a few ways. In a class action lawsuit, one employee can file a lawsuit for everyone who works for the same company. Once the court grants permission for the case to proceed, all of the employees included in the lawsuit will be notified of their ability to “opt-out” or not participate in the lawsuit.

In a collective action lawsuit, employees who want to participate in the lawsuit have to sign a legal document to “opt-in” or agree to participate in the suit. In a class action lawsuit, all employees are automatically considered to be part of the class unless they specifically state they do not want to be.

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