Funding Metrics, LLC v. Letha's Pies, LLC

1 Analyses of this case by attorneys

  1. Arkansas Supreme Court Upholds Validity of Class-Action Waiver Clause Even In Absence of Arbitration Clause

    Mitchell, Williams, Selig, Gates & Woodyard, P.L.L.C.July 26, 2022

    However, because violations of the Fair Labor Standards Act (“FLSA”) do not require any proof of intent (though there can be extra penalties for a “willful” violation), even employers who believe that they are following FLSA requirements may be caught in the equivalent of a very expensive “foot fault,” particularly if a violation is brought as a class action.Among the most powerful tools employers have as protection against class actions are clauses in employment agreements waiving the right to file a class action, which often accompany a requirement to arbitrate any employment dispute under the Federal Arbitration Act (“FAA”). Recently, the Arkansas Supreme Court re-affirmed the validity of class-action-waiver clauses even without an agreement to arbitrate, in Funding Metrics, LLC v. Letha’s Pies, LLC, 2022 Ark. 73.Class-Action Waiver UpheldIn Funding Metrics, the plaintiff, Letha’s Pies, filed a class action against Funding Metrics alleging violations of Arkansas securities law. Funding Metrics opposed the class certification, pointing to the class-action waiver in its merchant agreement with Letha’s pies.