Compliance Stuff

At a Glance Seventh Circuit rejects “lenient”  Lusardi  standard for issuing notice of collective actions and introduces more flexible approach. Under the new approach, plaintiffs must make a threshold showing that there is a material factual dispute as to whether the proposed collective is similarly situated, and defendants can submit rebuttal evidence, which the district courts must consider. The opportunity to present opposing evidence renders an employer’s initial factual investigation even more critical, as the evidence presented in rebuttal to a plaintiff’s evidence can avoid notice altogether or greatly limit its scope.  In a significant shift from longstanding precedent, the U.S. Court of Appeals for the Seventh rejected the widely used two-step “ Lusardi ” 1  framework for issuing notice in collective actions under Section 216(b) of the Fair Labor Standards Act (FLSA), which applies to claims under the FLSA, the Age Discrimination in Employment Act (ADEA), a...

A recent May 2025 opinion from the U.S. Court of Appeals for the Seventh Circuit warns employers that they may not be able to rely strictly on a health care provider’s certification under the Family and Medical Leave Act (FMLA) where they have additional information about an employee’s health condition. It also offers guidance to employers on the mechanics of requiring the use of paid leave concurrently with unpaid FMLA leave. Quick Hits A Seventh Circuit opinion warns employers against strictly relying on health care provider certifications for FMLA leave when they possess additional information about an employee’s health condition. Employees who fail to comply with paid leave substitution policies are still entitled to unpaid FMLA leave. Employers may want to review their paid leave substitution policies to ensure compliance with FMLA regulations and avoid potential legal issues. Background In  Davis v. Illinois Department of Human Services , a pregnant employee had missed a...