Class Action Law May Affect Plaintiffs in Employment Litigation

 
Tuesday, March 1, 2005
 
The new Class Action Fairness Act, enacted on February 18, 2005, is aimed primarily at tort claims involving injuries to persons or property on a large scale. However, the Act may have an impact on class and collective actions arising from workplace disputes. Designed to reduce frivolous lawsuits and curb awards of attorneys' fees to plaintiffs' counsel, the new law is expected to decrease significantly  the practice of "forum shopping" in an attempt to find the most sympathetic court. 

The Act dramatically revises the rules for individuals collectively to pursue employment law claims.  The Act states that it will "(1) assure fair and prompt recoveries for class members with legitimate claims; (2) restore the intent of the framers of the United States Constitution by providing for Federal court consideration of interstate cases of national importance under diversity jurisdiction; and (3) benefit society by encouraging innovation and lowering consumer prices."
 
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