Bringing a Class or Collective Action for Unpaid Wages
If you and your coworkers are not being paid fairly, whether it’s missing overtime, unpaid wages, or having to work off the clock, you may be able to file a class or collective action lawsuit. This class or collective action procedure allows a group of employees to take legal action together instead of filing individual lawsuits. While this can be a powerful way to recover lost wages, it’s important to understand how the process works and what challenges you might face.
The lawyers at Frankel Syverson PLLC have extensive experience handling class and collective actions on behalf of employees due unpaid wages, and they are frequently appointed by federal and state courts as class counsel.
What Is a Wage and Hour Class Action?
A wage and hour class action is a lawsuit where a group of employees sues their employer for the same unpaid wage violations. Common reasons for filing include:
Unpaid overtime – Not paying employees the correct overtime rate.
Minimum wage violations – Paying below the legal minimum wage.
Misclassification – Calling employees "independent contractors" or "exempt" to avoid paying overtime.
Off-the-clock work – Having employees to work during time periods when they are not clocked in.
Instead of handling claims separately, a class action groups employees with similar claims together, making it more efficient and often leading to better outcomes for employees. This is especially helpful in cases involving employees who have unpaid wages, because while their individual damages may be smaller, they can pursue their claims together and in the aggregate form a much larger case that gets the employer’s attention.
Why Class and Collective Actions Benefit Employees
Filing a lawsuit can be expensive and time-consuming for an individual employee. A class action provides several key benefits:
1. Strength in Numbers
A single employee might not have the resources to fight a large company. But when many employees join together, their case becomes stronger. Employers may be more likely to take the claim seriously when multiple workers are involved.
2. Contingency Fee
Most wage and hour class actions are often handled on a contingency basis, meaning employees don’t pay upfront legal fees; the lawyers only get paid if they win or settle the case. In fact, the federal and state statutes that employees in Arizona often bring class actions under when pursuing unpaid overtime and minimum wage have an attorneys’ fees provision that says an employee is entitled to have the offending employer pay their attorneys’ fees and costs of bringing the lawsuit if they prevail.
3. Easier Process for Employees
In an individual lawsuit, each employee would have to file their own claim, gather their own evidence, and go through a lengthy legal process. A class action simplifies this by allowing one employee to pursue a lawsuit to cover all affected employees. This saves time and effort for workers.
4. Bigger Impact and Better Results
If the case is certified as a class or collective action, the named plaintiff can obtain results on behalf of the employees suffering unpaid wages for similar reasons. Additionally, successful lawsuits can push companies to change their wage policies, helping current and future workers.
Class Action vs. Collective Action: What’s the Difference?
There are two main types of group lawsuits for unpaid wages:
Class Action (State Law Claims & Some Federal Cases)
Employees are automatically included unless they choose to opt out.
The court must approve the class before the case can move forward as a class action.
Collective Action (Fair Labor Standards Act - FLSA Cases)
Employees must opt in by signing a form to join the lawsuit.
The court must approve the case as a collective action.
The lawsuit only includes those who join the lawsuit.
Steps to File a Wage and Hour Class Action
1. Talk to a Lawyer
An employment attorney can review your situation and determine if a class or collective action is the right approach. They can speak to you about the risks and benefits and talk to you about how the process is different from a regular individual action for unpaid wages.
2. Gather Evidence
Your lawyer will help you collect evidence and documents like:
Pay stubs
Timesheets
Work schedules
Company policies
This helps evaluate the claims and the strength of the case and ensures you preserve evidence required when pursuing a lawsuit.
3. File the Lawsuit and Get Class or Collective Action Certification
Once the lawsuit is filed, the court decides if the case qualifies as a class or collective action. If certified as a class or collective action by the court, it can forward on behalf of all affected employees who are part of the group certified by the court.
4. Discovery and Negotiations
Both sides exchange evidence, collect discovery, and take depositions. Often the employer may offer a settlement to avoid going to trial. Many cases end in a settlement where employees receive back pay and other compensation like having their attorneys’ fees paid for.
5. Trial and Final Decision
If no settlement is reached, the case goes to trial. A judge or jury decides whether the employer violated wage laws and determines how much money should be paid to employees.
Is a Class Action Right for You?
The lawyers at Frankel Syverson PLLC are experienced in class and collective actions on behalf of employees pursuing unpaid wages, having recovered millions of dollars in cases brought on behalf of employees against companies of all sizes. Please contact our office so we can help determine the best approach for your unpaid wage matter and guide you through the process of pursuing a class or collective action if we mutually agree that is the right way to go.