Daily Archives: January 31, 2012

Federal Court of Appeals Upholds Class Certification for Bank Employees in Illinois Minimum Wage Law Suit

The U.S. Court of Appeals for the Seventh Circuit has ruled that a District Court did not err in certifying for class action treatment plaintiffs-bank employees’ lawsuit under the Illinois Minimum Wage Law, alleging that defendant-employer denied them overtime pay by: (1) instructing them not to record hours actually worked; (2) modifying recorded overtime hours; (3) providing “comp” time instead of paying overtime; and (4) directing them to work during unpaid breaks.

While the defendant bank argued that the District Court’s certification of two classes consisting of hourly workers and assistant branch managers performing duties of hourly workers failed to comply with Rule 23(c)(1)(B) and did not satisfy commonality prerequisites for class certification, the District Court’s definition of instant classes was sufficiently clear so as to leave no doubt as to which employees constituted each class. Moreover, the Seventh Circuit reasoned, two classes satisfied the commonality requirement where allegations of the complaint did not require individual assessments of liability as to each class member, but rather concerned the bank’s enforcement of its policy with respect to recording and paying overtime.

Ross v. RBS Citizens, N.A., No. 10-3848 (January 27, 2012) N.D. Ill., E. Div.

Consumer Confidence Edges Lower in January 2012

The Conference Board has announced that its measure of consumer confidence dipped slightly in January 2012. After increasing to 64.8 in December 2011, the index slipped to 61.1 in January.

“Consumer Confidence retreated in January, after large back-to-back gains in the final two months of 2011,” said Lynn Franco, Director of The Conference Board Consumer Research Center. “Consumers’ assessment of current business and labor market conditions turned more downbeat and is back to November 2011 levels.  Regarding the short-term outlook, consumers are more upbeat about employment, but less optimistic about business conditions and their income prospects.  Recent increases in gasoline prices may have consumers feeling a little less confident this month.”

Consumers outlook for business conditions weakened slightly, with those anticipating business conditions to improve over the next six months decreasing to 16.6 percent from 16.8 percent, while those expecting business conditions will worsen increased to 15.1 percent from 13.4 percent.

Consumers’ outlook for the labor market, however, was moderately more favorable.  Those expecting more jobs in the months ahead increased to 16.2 percent from 14.0 percent, while those anticipating fewer jobs declined to 19.5 percent from 20.2 percent. The proportion of consumers expecting an increase in their incomes declined to 13.8 percent from 16.3 percent.

U.S. Home Prices Drop in Almost Every City in November 2011: S&P Case-Shiller

According to the latest S&P/Case-Shiller® Home Price Indices, U.S. home prices showed declines of 1.3 percent for both the 10- and 20-City Composites in November 2011, compared to October. For a second consecutive month, 19 of the 20 cities covered by the indices also saw home prices decrease.

On an annual basis, the 10- and 20-City Composites declined 3.6 percent and 3.7 percent, respectively, compared to November 2010. The price declines were worse than the -3.2 percent and -3.4 percent respective rates reported for October.

In addition, 13 of the 20 MSAs saw their annual returns decrease compared to October’s data. New York and Tampa saw no change in annual
returns in November; while Charlotte, Cleveland, Denver, Minneapolis and Phoenix saw their annual rates improve. At -11.8 percent, Atlanta continued to post the lowest annual return. Detroit and Washington, D.C., were
the only two cities to post positive annual returns of +3.8 percent and +0.5 percent, respectively, in November. While positive, both cities saw these annual rates fall versus October’s data.

“The crisis low for the 10-City Composite was April 2009; for the 20-City Composite the more recent low was March 2011,” said David M. Blitzer, Chairman of the Index Committee at S&P Indices. “The 10-City Composite is now about 1.0% above its low, and the 20-City Composite is only 0.6% above its low. From their 2006 peaks, both Composites are down close to 33% through
November.”

For more information, please click on the Housing Statistics page in the menu bar.