Ervin v. OS Restaurant Services, Inc.

In proceeding under Fair Labor Standards Act alleging various violations of minimum wage and maximum hours provisions, Dist. Ct. erred in denying plaintiffs' request to proceed as class action under Rule 23(b)(3) pursuant to Dist. Ct.'s supplemental jurisdiction where class action concerned plaintiffs' state-law minimum wage claims pertaining to employer's use of tips received by its employees. While Dist. Ct. found that there was clear incompatibility between FLSA proceeding and proposed class action proceeding where potential plaintiffs in FLSA proceeding must opt into said action while class members in Rule 23(b)(3) action must opt out of said proceeding, Ct. of Appeals found that there is no categorical rule against certifying Rule 23(b)(3) state-law class action claims in FLSA proceeding. Ct. further rejected Dist. Ct.'s belief that difference in size between larger state-law class action and smaller number of participants in FLSA collective action supported Dist. Ct.'s finding that state-law action substantially predominated over FLSA action so as preclude assumption of supplemental jurisdiction over state-law class action.