Summary
The Seventh Circuit held that choice-of-law clauses selecting Virginia law do not apply to claims under the Illinois Wage Payment and Collection Act because the Act's definition of "employee" is statutory and independent of any contract, and the Act governs payment for work performed in Illinois regardless of contractual designations. The court also found no abstention under the Class Action Fairness Act where the in-state defendants were added and later dismissed, and rejected the argument that Diakon waived its choice-of-law defense. The case addresses the interplay between contractual choice-of-law provisions and state wage-and-hour statutes, the ABC test for employee classification, and CAFA's single-state carveout.
Questions Presented
- Whether the choice-of-law clauses in the Service Agreements require application of Virginia law to plaintiffs' claims under the Illinois Wage Payment and Collection Act.
- Whether Diakon waived the choice-of-law defense.
- Whether the district court should abstain under the Class Action Fairness Act due to the presence of Illinois citizen defendants.
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