A collective action is a type of group lawsuit authorized by the FLSA, the federal law that governs minimum wage and overtime pay. Unlike class actions under Rule 23, collective actions require each employee to affirmatively opt in—meaning they must sign a written consent to join the case.
Collective actions are appropriate when:
| Collective Action | Class Action | |
|---|---|---|
| Governing Law | FLSA (federal) | State or federal law |
| Minimum Number of Participants | No minimum number of participants | Typically at least 40 class members required |
| Participation Mechanism | Opt-in: Employees must sign a consent form to participate | Opt-out: Employees are included unless they decline to participate |
| Standard for Certification | Requires showing of “similarly situated” workers | Requires meeting Rule 23 class criteria (or similar state law criteria) |
| Common Use | Wage and hour claims under the FLSA | Wage and hour claims under state law; employment discrimination |