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Seventh Circuit Establishes Evidence-Based Gatekeeping at Collective Action Notice Stage

Requiring proof of shared unlawful practices empowers judges to tailor pre-notice discovery, testing both parties’ evidence

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Overview

  • The court abandoned the Lusardi two-step conditional certification in Richards v. Eli Lilly & Co. in favor of a single, flexible framework for issuing notice.
  • Under the new standard, plaintiffs must present concrete evidence that proposed opt-in employees are similarly situated instead of relying on modest factual allegations.
  • Defendants now have a formal opportunity to submit rebuttal evidence and challenge similarity before courts authorize notice to potential collective members.
  • Judges may order targeted pre-notice discovery or bypass a two-stage process when existing evidence suffices to resolve factual disputes.
  • The decision deepens a circuit split with Fifth, Sixth and Ninth Circuits and prompts employers to strengthen documentation, refine venue choices and adjust litigation strategies.