What is the difference between a class action and a collective action?
Some statutes, such as the federal Fair Labor Standards Act (FLSA), allow a court to certify a collective action as opposed to a class action. The key difference between a collective action and a class action is that in a collective action, absent parties are asked whether they want to opt-in to the lawsuit. By contrast, in a class action, absent parties are bound by the result of the litigation unless they opt-out of the case after receiving a class notice. Many FLSA cases are brought as both collective actions and class actions.