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National Litigation Hotline
State Law Claims Not Permitted in FLSA Collective Action Suit
A federal district court has held that a waiter bringing an FLSA collective action for improper wage deductions may not bring a state-law class action involving the same allegations. McClain v. Leona's Pizzeria Inc., 2004 WL 1745750 (N.D. Ill. July 30, 2004).
Shamus McClain brought suit against Leona's, which runs a chain of 17 restaurants in the Chicago area. McClain was challenging two company policies. He alleged that Leona's deducts 3% of each customer tip paid with a credit card, but illegally uses the maximum tip credit allowed under the FLSA to pay its tipped employees less than the minimum wage. He further claimed that Leona's illegally deducted 45 cents per hour from every employee's pay because they are allowed to consume certain food and drinks during working hours, causing them to not be paid the minimum wage. In May 2004, McClain was authorized to send notices to all Leona's employees, enabling them to opt into the FLSA collective action. Subsequently, he moved for class certification under Rule 23 of the Federal Rules of Civil Procedure regarding three state-law claims.
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