Big win for employers: Second Circuit bars out-of-state workers from joining FLSA collective actions

The U.S. Court of Appeals for the Second Circuit determines appeals from the U.S. District Courts in New York, Connecticut, and Vermont. In a recent case, the Second Circuit heard an employer’s appeal of the Vermont district court’s determination that it had personal jurisdiction over the Fair Labor Standards Act (FLSA) collective action claims of potential plaintiffs who reside outside Vermont. 

Facts

Bimbo Foods Bakeries Distribution LLC sells baked goods to retailers through delivery drivers, or distributors. A group of delivery drivers claimed the company misclassified them as independent contractors and didn’t pay them for overtime work. They sued Bimbo for alleged violations of the FLSA on behalf of themselves and other similarly situated workers. 

The Vermont district court authorized the delivery drivers to send notices to similarly situated workers—including distributors based outside Vermont, the state where the drivers who filed the complaint reside and where the district court is located. Bimbo appealed, arguing that the district court lacked personal jurisdiction over the claims of those out-of-state distributors. 

Appeals court calls bingo for Bimbo