What is a Class Action for Overtime Payment?
Attorney Yaakov Shnitman, a labor law specialist in Haifa, explains what a class action is, when and against whom it can be filed, and its connection to overtime rights.
A class action is filed on behalf of a group of employees sharing a common issue such as lack of pension contributions, unpaid tenure, unpaid overtime, or other mandatory labor rights.
To file such an action, court approval is required under the Class Action Law, 2006. The following cumulative conditions must be met (Section 8):
- The case raises essential factual or legal questions common to the group.
- There’s a reasonable chance the questions will be resolved in favor of the group.
- A class action is the efficient and fair way to decide the matter.
- The class’s interests will be properly and faithfully represented.
Per Section 4(a)(1), only a person with a cause of action may file. Still, if all criteria are met, the court may allow replacing or adding a representative plaintiff.
What if there is a collective agreement and union?
Section 10(3) of the Second Schedule excludes class actions where a collective agreement applies and the employer is a party to it. However, this exception doesn’t apply when the union (e.g., National Histadrut) fails to enforce employees’ rights.
Case study: our firm represented employees in a claim against ORS. We proved that IDF-disabled escorts were entitled to:
- 125% pay for the 8th night hour,
- 125%-150% pay for hours beyond 42 per week.
The National Labor Court confirmed the ruling. Later, we filed a class action on behalf of more employees. The government and the union joined the case.
Although the union claimed to protect workers, we saw no actual enforcement. Thus, the court will need to examine whether workers’ rights were truly safeguarded.
If a union fails in its duty, a class action remains the most effective legal remedy.
