LOS ANGELES — Macy’s West Stores Inc.’s truck drivers and their helpers will be sharing in a $3 million settlement recently approved in California federal court. The settlement between the company and the drivers is intended to resolve a class action wage and overtime lawsuit. The truck drivers and their helpers alleged the company misclassified their positions as independent contractors, which denied them the overtime wages to which they were entitled when they worked more than 40 hours in a workweek.
The Drivers’ Claims
Four Macy’s drivers filed the lawsuit in November 2013 in California state court. But the lawsuit was removed to federal court in January 2014 at the request of Joseph Eletto Transfer Inc., the logistics management company responsible for hiring and classifying Macy’s drivers. The drivers and their helpers claim Eletto, and by extension Macy’s, misclassified them as independent contractors. As independent contractors, the drivers and their helpers were not subject to minimum wage and overtime protections. In support of their claim the drivers provided evidence that the economic realities and Macy’s behavior was more like an employer to an employee than that of a business to an independent contractor.
According to the drivers, Macy’s employees hired both the drivers and their helpers, set the schedule for deliveries, required the drivers and their helpers wear Macy’s uniforms, and required the drivers to place a Macy’s banner on their trucks, which they were not allowed to use for any other purpose while the banner was on the truck. Based on Macy’s actions and requirements, the drivers claim they did not have the independence required for independent contractor status and they were, therefore, employees entitled to overtime wages when they worked more than 40 hours in a workweek.
The Settlement
Initially the class action included around 200 drivers and helpers. However, the class size nearly tripled by the time a settlement was reached. The major increase in class size concerned the judge in this case, until the plaintiffs explained Eletto had initially underestimated the number of helpers who assisted the drivers during the period in question.
Despite the judge’s initial concerns, the settlement did receive preliminary approval. In the settlement, Macy’s will contribute $3 million and Eletto will pay $1 million. The named plaintiffs and other drivers and helpers who were part of the initial group of class members will receive payouts of at least $12,000 each. And the remaining class members will receive payouts of varying amounts based on the terms of the settlement.
If you are a Macy’s West Store Inc. driver included in this class action, you will likely receive notice of the terms of the settlement soon. If you are a Macy’s driver or you have questions about a settlement offer in a separate class action overtime pay lawsuit, contact our experienced overtime pay lawyers today. Time is limited for responding to settlement offers so it is important to call as soon as possible! Our knowledgeable team of overtime pay lawyers can be reached at (855) 754-2795 or you may complete our Free Unpaid Overtime Case Review form.