Alaska Employment Law

Dancers at two Anchorage clubs have sued for unpaid overtime and improper tip-sharing.  They asked U. S. District Judge Timothy Burgess to certify an opt-out class asserting rights under the Alaska Wage and Hour Act, and to recognize an opt-in collective action under the Fair Labor Standards Act. 

Burgess first rejected the employers’ contentions that the two claims presented an inherent jurisdictional conflict, and that simultaneous prosecution would be unworkable in fact.  Burgess found that remanding the state claim to state court, in fact, “is likely to create more confusion, not less.” 

But Burgess then proceeded to deny, without prejudice, recognition of the FLSA matter as a collective action, because the employees had failed to show the existence of other employees who were denied overtime pay.  Burgess also denied Rule 23 certification of the AWHA claim (again, without prejudice) because of the absence of proof of typicality and numerosity.  Finally, Burgess expressed skepticism that he had authority to require opt-ins (rather than opt-outs) for a Rule 23 action, as the employers requested.  

Thornton v. Crazy Horse, Inc., 3:06-cv-00251-TMB (D.Alaska Order of Sept. 30, 2008)

Ken Legacki represents the dancers.  Rex Butler represents Crazy Horse, and Ken Jacobus represents Fantasies.