What is the difference between a class action and a collective action?

Class action and collective action lawsuits are legal tools used to help groups of people who have suffered the same harm. The main difference between a class action and a collective action is who can bring the case to court. In a class action, one or more individuals sue on behalf of the entire group of people. This is known as a “representative class action”. In a collective action, all the group members must join the suit together and approve any settlement. Additionally, only certain kinds of lawsuits are eligible for a collective action. In Washington, collective actions may only be used for wage and hour violations. In a class action lawsuit, the court must certify the class and approve the settlement before any money is distributed. This ensures that the settlement is fair and reasonable to all class members. In a collective action, no court approval is required to settle the case. All class members must agree to the settlement before it can be finalized. In both class actions and collective actions, the court may award money, known as a “damages award” or “settlement”, for losses the group of people have suffered. Class action and collective action lawsuits both seek to help people who have been wronged. Whether to pursue a class action or a collective action can depend on a variety of factors and should be discussed fully with an experienced attorney.

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What is the difference between a class action and a collective action?

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