October 2017

Railcar Company Avoids Class Action Employment Lawsuit

United States - California

A railcar company avoided a class action employment lawsuit and headed off potential future claims after its union questioned whether the company's meal periods were legally compliant. Faegre Baker Daniels represented the company, using a proactive strategy to help the client limit its exposure.

FaegreBD helped the client report the violation to California's Department of Labor, Division of Labor Standards Employment (DLSE), complete a voluntary compliance audit, and negotiate a favorable settlement with the administrative agency that covered not just the original exposure but additional not-yet-asserted, but equally problematic, claims. The firm then helped convince the union to voluntarily dismiss its putative class action; sign a side letter agreement with the state; and withdraw 11 grievances that union members had filed against the company in recent months.

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