Fedex Settles Million-Dollar Misclassification Case, a Dozen Similar Suits Pending Nationwide

Posted by National Alliance for Fair Contracting on

In a settlement of a federal court lawsuit in Maine, FedEx Ground has agreed to pay $5.8 million in back pay and legal fees to 141 drivers it misclassified as independent contractors.  The lawsuit claimed that FedEx denied overtime pay and made improper deductions in addition to requiring drivers to pay for their expenses.  While there were seven named plaintiffs in the case, only two signed the settlement.  The others felt the amount being paid out by FedEx was too low.

 The federal court judge noted that if the case had gone to trial, damages could have topped $10 million. Nonetheless, the court found the settlement fair and adequate:

 In approving the settlement last week, the court acknowledged that “the proposed settlement…is clearly a compromise that discounts to some degree…the drivers’ total claims” but is a “fair trade-off for the uncertainties of trial and appeal and a prolonged delay in receiving any money. In that regard, the court noted that FedEx Ground has won some independent contractor misclassification cases and lost others.

The court also found that the amount (one-third of the $5.8 million settlement) sought by the lawyers for the class for counsels’ legal fees, costs, and expenses was reasonable.

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Appalachian Oilfield Services Agrees to Pay $129,802 in Overtime Back Wages to 29 Workers at Ohio Oil Fracking Sites

Posted by National Alliance for Fair Contracting on

COLUMBUS, Ohio — Appalachian Oilfield Services LLC has agreed to pay 25 heavy equipment operators $129,802 in overtime back wages after an investigation by the U.S.

Department of Labor’s Wage and Hour Division found the company was in violation of the Fair Labor Standards Act. At eastern Ohio drilling locations, the workers provided cleanup services and hauled away muck ejected from wells in the oil fracking process.

“Companies that underpay their employees also undercut employers who obey the law and pay their workers lawfully required wages,” said George Victory, the Wage and Hour Division’s director in Columbus. “Failing to compensate employees properly for all hours worked is unacceptable. The Wage and Hour Division is committed to ensuring workers receive the pay they have rightfully earned.”

An investigation conducted by the division’s Columbus District Office found that equipment operators were paid a flat daily rate for a 12-hour shift. When they worked in excess of 12 hours, they were paid an hourly rate. No overtime compensation was provided for hours worked in excess of 40 hours, in violation of the FLSA.

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The Department of Labor Has Your Back

Posted by National Alliance for Fair Contracting on

The federal Department of Labor (DOL) budget for fiscal year 2015 is official, and it includes new programs and additional protections for workers and employees. This is exciting news for millions of Americans, including the long-term unemployed, students who want to work when they graduate, and current employees whose employers may not be following the law as they should. Check out the changes that are being put in place to help you.

Summit Drywall Inc. ordered to pay $550,000 in unpaid wages and damages to 384 workers to settle US Department of Labor lawsuit

Posted by National Alliance for Fair Contracting on

SEATTLE – The U.S. Department of Labor has obtained a consent judgment in the U.S. District Court for the Western District of Washington ordering Issaquah-based drywall installer Summit Drywall Inc., and its owner Thomas Kauzlarich, to pay $550,000 in overtime back wages and liquidated damages to 384 current and former employees. The judgment resolves an investigation and subsequent lawsuit by the department that found the company violated the Fair Labor Standards Act’s overtime and record-keeping provisions from Oct. 15, 2009, through April 15, 2013.

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San Clemente Company Ordered to Give Back Pay After Wage Violations

Posted by National Alliance for Fair Contracting on

A San Clemente electrical services firm paid more than $240,000 in back wages to just over 100 employees after a Department of Labor investigation found the company violated overtime and record-keeping regulations.

Solis Lighting and Electrical Services was found to have not paid workers overtime after 40 hours, as required by the Fair Labor Standards Act. The company also deducted a 30-minute meal break from the daily hours of workers, even as they worked through their break.

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