Wells Fargo Wage Suit Sets Up Clash Between Arbitration, Notices, according to Bloomberg Law

From Bloomberg Law:

Wells Fargo Bank NA hopes to persuade a federal appeals court in Philadelphia to block workers who signed arbitration agreements from receiving notice about joining a wage-and-hour collective lawsuit.

The US Court of Appeals for the Third Circuit will hear oral arguments Wednesday over whether to follow two other federal circuit courts that have ruled that workers who agreed to arbitrate workplace disputes shouldn’t automatically get notices about opting into conditionally certified Fair Labor Standards Act collective actions. Those workers can’t join those suits, so notices would only mislead them into believing otherwise, Wells Fargo said.

The bank is challenging a federal district judge’s ruling that authorized notices to 7,800 mortgage loan officers, including nearly 3,900 who had signed arbitration agreements. The US Chamber of Commerce filed a friend-of-the-court brief backing the bank’s appeal.

A Third Circuit decision affirming the notice order would create a circuit split on the issue, potentially drawing the US Supreme Court into the fray. The Fifth Circuit restricted FLSA noticing in a 2019 decision involving JPMorgan Chose & Co., while the Seventh Circuit minted its standard in 2020 in a case against Facebook Inc.

Continue reading Wells Fargo Wage Suit Sets Up Clash Between Arbitration, Notices on Bloomberg Law

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