What is an FLSA Collective Action?
By Timo Bakker · July 6, 2026 · 5 min read
The Fair Labor Standards Act (FLSA) has its own version of a class action — called a "collective action." It works similarly to a class action but with important differences that affect participation.
Key differences from Rule 23 class actions
- Opt-IN instead of opt-out. In a Rule 23 class action, you are automatically in unless you opt out. In FLSA collectives, you have to affirmatively opt IN to participate.
- Simpler certification. The court only needs to find plaintiffs are "similarly situated" — a lower bar than Rule 23 requires.
- Wage and hour focus. Only for FLSA claims: unpaid overtime, minimum wage violations, misclassified workers.
How opting in works
You receive notice that a collective action has been filed against your employer or former employer. To participate, you sign a "consent to sue" form and file it with the court. Miss the opt-in deadline and you cannot participate.
Why it matters
FLSA collectives typically have much smaller participation rates than Rule 23 class actions because of the opt-in requirement. Only 15-25% of eligible workers usually opt in, versus 5-15% who file individual claims in an opt-out class action.
Payouts
FLSA collective settlements typically pay $500-10,000 per opt-in plaintiff depending on how much unpaid overtime is documented. Payouts are often much higher than typical consumer class actions.
See wage and hour guide for currently-open cases.