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UPS SETTLES EMPLOYEE OVERTIME LAWSUIT FOR $12.8 MILLION

U.S. District Judge Phyllis Hamilton of the Northern District of California has approved the preliminary class action settlement agreement  between UPS delivery drivers and their employer, UPS Supply Chain Solutions.  The UPS employees claimed they were denied benefits and overtime pay when their employermisclassified them as independent contractors.  because they were misclassified  Supply Chain Solutions.

The class action includes approximately 660 putative class members and UPS has issued a statement that it has changed how it uses independent contractor based on the allegations made by the class members.

FULL STORY

The misclassification of employees as independent contractors is a violation of the Fair Labor Standards Act (FLSA).

Are you an employees or independent contractor? The answer is dependent on the degree of control the employer exercises over the employee, as well as the applicable test, which varies under different federal and state laws.  Generally, the classification of workers implicates many significant issues: (1) whether income taxes must be withheld and FICA payments made; (2) whether state law unemployment compensation or workers’ compensation laws apply; (3) whether employees qualify for health and retirement benefits governed by ERISA, leave under the FMLA or analogous state laws, overtime pay under the FLSA or vacation pay under state wage payment laws; and (4) whether workers can bring claims under the myriad of federal and state anti-discrimination and other labor and employment laws.

If you or a loved one have been classified as an independent contractor and you believe you are an employee, then you may be entitled to money damages under the FLSA.  Contact one of our employment attorneys for a free legal consultation.