Andrew Harrington v. Cracker Barrel Old Country Store, Inc.

142 F.4th 678
CourtCourt of Appeals for the Ninth Circuit
DecidedJuly 1, 2025
Docket23-15650
StatusPublished
Cited by9 cases

This text of 142 F.4th 678 (Andrew Harrington v. Cracker Barrel Old Country Store, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Andrew Harrington v. Cracker Barrel Old Country Store, Inc., 142 F.4th 678 (9th Cir. 2025).

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT Nos. 23-15650 ANDREW HARRINGTON; KATIE 24-1979 LIAMMAYTRY; JASON LENCHERT; DYLAN BASCH, D.C. No. 2:21-cv- 00940-DJH Plaintiffs-Appellees,

v. OPINION

CRACKER BARREL OLD COUNTRY STORE, INC.,

Defendant-Appellant.

Appeal from the United States District Court for the District of Arizona Diane J. Humetewa, District Judge, Presiding

Argued and Submitted February 7, 2025 Phoenix, Arizona

Filed July 1, 2025

Before: Michael Daly Hawkins, Richard R. Clifton, and Bridget S. Bade, Circuit Judges.

Opinion by Judge Hawkins 2 HARRINGTON V. CRACKER BARREL OLD COUNTRY STORE, INC.

SUMMARY *

Labor Law

The panel (1) vacated the district court’s order granting preliminary certification of a collective action under the Fair Labor Standards Act and approving notice to a group of opt- in plaintiffs and (2) remanded for further proceedings. 29 U.S.C. § 216(b) allows employees alleging violations of minimum-wage and overtime-compensation requirements to litigate their claims collectively with other “similarly situated” plaintiffs. In a typical case, plaintiffs will, at some point around the pleading stage, move for preliminary certification of the collective action, contending that they have at least facially satisfied the “similarly situated” requirement. If the district court grants preliminary certification, then defendants may move for decertification at a later stage. Here, a group of current and former employees of Cracker Barrel Old Country Store, Inc., alleged that Cracker Barrel violated the Fair Labor Standards Act in connection with its wages for tipped workers. The district court granted these plaintiffs’ motion for preliminary certification and approved notice to a group of prospective opt-in plaintiffs, which included employees who may have entered into arbitration agreements with Cracker Barrel as well as out-of- state employees with no apparent ties to Cracker Barrel’s operations in the forum state of Arizona.

* This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader. HARRINGTON V. CRACKER BARREL OLD COUNTRY STORE, INC. 3

The panel held that the district court did not abuse its discretion in following the above-described two-step procedure in granting preliminary certification. The panel also held that where the existence and validity of an arbitration agreement was in dispute, the district court was not required to determine the arbitrability of absent employees’ claims prior to authorizing notice. Joining the majority of other circuits reaching the issue, the panel held that Bristol-Myers Squibb Co. v. Superior Court of Cal., 582 U.S. 255 (2017), applies in actions under the Fair Labor Standards Act in federal court. Consequently, where the basis for personal jurisdiction in a collective action is specific personal jurisdiction, the district court must assess whether each opt-in plaintiff’s claim bears a sufficient connection to the defendant’s activities in the forum state. Because the district court authorized nationwide notice on the mistaken assumption that it would not need to assess specific personal jurisdiction on a claim-by-claim basis, the panel vacated and remanded for further proceedings. In a separate memorandum disposition, the panel affirmed the district court’s denial of Cracker Barrel’s motion to compel arbitration of a plaintiff’s claims. 4 HARRINGTON V. CRACKER BARREL OLD COUNTRY STORE, INC.

COUNSEL

Nitin Sud (argued), Sud Law PC, Bellaire, Texas; Benjamin Pierce and John Sud, Attorneys at Law, Phoenix, Arizona; Monika Sud-Devaraj, Law Office of Monika Sud-Devaraj PLLC, Phoenix, Arizona; for Plaintiffs-Appellees. James M. Coleman (argued) and Jason D. Friedman, Constangy Brooks Smith & Prophete LLP, Fairfax, Virginia; Steven B. Katz, Constangy Brooks Smith & Prophete LLP, Los Angeles, California; William W. Drury Jr., Renaud Cook Drury Mesaros PA, Phoenix, Arizona; for Defendant- Appellant. Lauren E. Bateman and Allison M. Zieve, Public Citizen Litigation Group, Washington, D.C., for Amici Curiae Law Professors. Matthew C. Helland, Nichols Kaster LLP, San Francisco, California, for Amicus Curiae National Employment Lawyers Association. HARRINGTON V. CRACKER BARREL OLD COUNTRY STORE, INC. 5

OPINION

HAWKINS, Circuit Judge:

The Fair Labor Standards Act of 1938 (the “FLSA”) imposes certain minimum-wage and overtime-compensation requirements on employers and allows employees alleging violations of those requirements to litigate their claims collectively with other “similarly situated” plaintiffs. See 29 U.S.C. § 216(b). There is a “near-universal practice to evaluate the propriety of the collective mechanism—in particular, plaintiffs’ satisfaction of the ‘similarly situated’ requirement—by way of a two-step ‘certification’ process.” Campbell v. City of Los Angeles, 903 F.3d 1090, 1100 (9th Cir. 2018). In a typical case, “plaintiffs will, at some point around the pleading stage, move for ‘preliminary certification’ of the collective action, contending that they have at least facially satisfied the ‘similarly situated’ requirement.” Id. The “sole consequence” of preliminary certification “is the sending of court-approved written notice” to prospective-plaintiff employees, who may opt to join into the collective action by filing a written consent with the court. Genesis Healthcare Corp. v. Symczyk, 569 U.S. 66, 75 (2013). Then, at a later stage in the proceedings “after the necessary discovery is complete,” defendants may “move for ‘decertification’ of the collective action on the theory that the plaintiffs’ status as ‘similarly situated’ was not borne out by the fully developed record.” Campbell, 903 F.3d at 1100. Here, a group of current and former employees (“Plaintiffs”) of Cracker Barrel Old Country Store, Inc. (“Cracker Barrel”) filed the underlying lawsuit alleging that Cracker Barrel violated the FLSA in connection with its 6 HARRINGTON V. CRACKER BARREL OLD COUNTRY STORE, INC.

wages for tipped workers. Following the two-step process just described, the district court granted Plaintiffs’ motion for preliminary certification and approved notice to a group of prospective opt-in plaintiffs. The group included employees that may have entered into arbitration agreements with Cracker Barrel as well as out-of-state employees with no apparent ties to Cracker Barrel’s operations in Arizona—the forum state. We granted Cracker Barrel’s motion to permit this interlocutory appeal to answer three questions: (1) Did the district court follow the correct procedure in granting preliminary certification? (2) Was the district court required to determine the arbitrability of absent employees’ claims prior to authorizing notice? (3) Does Bristol-Myers Squibb Company v. Superior Court of California (Bristol-Myers), 582 U.S. 255 (2017), apply in FLSA collective actions in federal court such that nationwide notice was inappropriate in this case? We find no error in the district court’s order with regard to the first two questions. As to the third question, we join the majority of our sister circuits reaching the issue and hold that Bristol-Myers applies in FLSA collective actions in federal court.

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142 F.4th 678, Counsel Stack Legal Research, https://law.counselstack.com/opinion/andrew-harrington-v-cracker-barrel-old-country-store-inc-ca9-2025.