Richards v. Lilly concerns collective action lawsuits

WASHINGTON, D.C. (Oct. 9, 2024) – NFIB filed an amicus brief in the case Monica Richards v. Eli Lilly & Company, et. al. at the U.S. District Court of Appeals for the Seventh Circuit. This case questions what method should be used to determine the eligibility of plaintiffs in a collective action lawsuit under the Fair Labor Standards Act (FLSA). NFIB filed the brief with a coalition of business groups, including the U.S. Chamber of Commerce.

“The current method for determining who can take part in an FLSA collective action lawsuit is confusing, arbitrary, and extremely costly,” said Beth Milito, Executive Director of NFIB’s Small Business Legal Center. “Small business owners need clarity and consistency, especially when defending their business in court. NFIB urges to Court to reject the Lusardi method.”

The brief makes two main arguments: 1) Courts must determine whether plaintiffs are “similarly situated”, and 2) The two-step method established in Lusardi v. Xerox Corp. does not ensure that plaintiffs meet the eligibility requirements at the outset of the collective action lawsuit.

The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.