Ninth Circuit clarifies notice requirements and out-of-state plaintiff jurisdiction in FLSA collective actions: Harrington v. Cracker Barrel Old Country Store, Inc.

In Harrington v. Cracker Barrel Old Country Store, Inc. (9th Cir. 2025) 142 F.4th 678, the Court of Appeals for the Ninth Circuit held that in Fair Labor Standards Act (FLSA) collective actions, arbitrability need not be conclusively determined prior to notice dissemination, but it is an abuse of discretion to authorize notice to employees indisputably subject to arbitration agreements, and specific personal jurisdiction applies to out-of-state plaintiffs’ claims.

Plaintiffs initiated an FLSA collective action alleging tip credit violations and sought preliminary certification and nationwide notice. This group included employees potentially bound by arbitration agreements and those without ties to the forum state (Arizona). The District Court granted the motion, finding factual questions on arbitrability and holding that a single Arizona plaintiff established personal jurisdiction for all nationwide plaintiffs. The district court certified the issue for interlocutory appeal due to its novelty.

Granting the appeal, the Ninth Circuit vacated the preliminary certification. It affirmed the two-step certification process from Campbell v. City of Los Angeles (9th Cir. 2018) 903 F.3d 1090, rejecting a more rigorous one-step approach. As an issue of first impression, the court aligned with the Fifth, Sixth, and Seventh Circuits, holding it an abuse of discretion to permit notice to employees indisputably subject to arbitration agreements. However, it declined to mandate conclusive arbitrability determinations prior to notice dissemination.

Finally, the Ninth Circuit addressed whether Bristol-Myers Squibb Company v. Superior Court of California (2017), 582 U.S. 255’s claim-by-claim analysis for specific personal jurisdiction applies to FLSA collective actions. Rejecting Plaintiffs’ argument that jurisdiction should be suit-level, the court held that FLSA collective actions, unlike class actions, comprise “individual claims by individual parties” (Campbell). It further ruled that, absent an FLSA provision authorizing nationwide service of process, the district court lacked Fourteenth Amendment personal jurisdiction over claims of plaintiffs lacking forum state ties. The Ninth Circuit remanded to the district court to reassess preliminary certification in light of Bristol-Myers.

Full opinion

Scroll to Top