In this Beacon Health Options overtime lawsuit, the Siegel Law Group helped secure FLSA conditional certification for utilization management care managers and case managers denied overtime pay. In Pettenato v. Beacon Health Options, Case No. 19-CV-1646 (JPO) (BCM) (S.D.N.Y.), the court granted conditional certification and addressed one of the most contested jurisdictional questions in modern overtime litigation. The firm has recovered $100M+ for workers nationwide and concentrates in representing healthcare and behavioral health workers misclassified as exempt.
On October 25, 2019, Magistrate Judge Barbara Moses granted conditional certification for Beacon Health employees in New York. However, the court denied nationwide certification based on the Supreme Court's decision in Bristol-Myers Squibb Co. v. Superior Court (BMS), finding that the court lacked personal jurisdiction over claims by out-of-state employees.
Notably, the defense was handled by Seyfarth Shaw LLP, one of the nation's most prominent management-side employment law firms — underscoring the high-stakes nature of this litigation.
The Pettenato decision was one of the early rulings applying the Bristol-Myers Squibb jurisdictional framework to FLSA collective actions. The BMS question — whether out-of-state workers can join a collective action filed in a particular court — has since become one of the most contested issues in overtime litigation. This ruling helped shape the developing law on this critical procedural issue.
While the jurisdictional limitation meant New York-based workers could proceed collectively but out-of-state workers would need to file in courts with jurisdiction over their own claims, the underlying conditional certification was still a victory — demonstrating that the misclassification of care managers performing standardized utilization review warranted collective treatment.
Utilization Management Care Managers and Case Managers at Beacon Health were licensed health professionals who performed utilization review — evaluating the medical necessity of behavioral health services. Despite the standardized nature of their review process, Beacon classified them as exempt from overtime under both the professional and administrative exemptions.
The BMS decision, originally a mass tort case, has been increasingly applied to FLSA collective actions. Courts around the country remain divided on whether BMS limits the ability of out-of-state workers to join collective actions in a single forum. This split makes the Pettenato ruling an important data point in the ongoing national debate.
If you are a utilization review professional, care manager, or behavioral health worker who has been classified as exempt from overtime, this case demonstrates that courts will evaluate whether your duties truly meet the exemption standard — even when you hold a professional license. The Siegel Law Group has deep experience in the legal standards governing the administrative and professional exemptions under both the FLSA and state laws.
The Bristol-Myers Squibb (BMS) decision was a 2017 Supreme Court ruling that limited where plaintiffs can file certain types of lawsuits. Applied to FLSA collective actions, some courts have ruled that out-of-state workers cannot join a collective action in a state where they did not work. This can require workers to file in multiple courts rather than a single forum.
Not necessarily. While utilization review nurses hold professional licenses, the FLSA's professional exemption requires that the work involve the consistent exercise of discretion and judgment. When utilization review follows standardized criteria, clinical guidelines, and requires supervisor approval for denials, the exemption may not apply.
An FLSA collective action allows similarly situated workers to join together in one lawsuit. The court first decides whether to grant conditional certification and authorize notice to potential opt-in plaintiffs. Workers then have a set period to join. After the opt-in period, the employer may move to decertify the collective.
Yes. Having a professional license does not automatically make you exempt from overtime. The exemption depends on your actual job duties — specifically, whether you exercise consistent discretion and judgment in your work or whether you follow standardized protocols and procedures. Many licensed professionals are entitled to overtime pay.
If BMS prevents you from joining a collective action in another state, you may be able to file your own claim in a court that has jurisdiction over your employer in the state where you worked. An experienced overtime attorney can advise you on the best forum for your claims.
The Siegel Law Group is a national overtime and wage law firm devoted entirely to representing workers denied overtime pay. Where many firms include wage cases as a small part of a broader employment practice, the Siegel Law Group has built its entire practice around overtime litigation — and the results reflect that commitment: $100M+ recovered for workers, 50+ class and collective action certifications, and 100+ federal lawsuits filed in 27+ federal courts nationwide. Founding attorney Jack Siegel is a Bloomberg BNA contributing author on wage and hour law.
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