LOS ANGELES — Almost one-year to the date since FedEx agreed to a $240 million payout with delivery drivers across 20-states, workers filed a new class action unpaid overtime lawsuit against the nation’s second largest package delivery service over claims that the company continues to skirt federal wage and labor laws. FedEx joins the growing list of large corporations hit by these types of claims alleging businesses are intentionally misclassifying workers as “independent contractors” to avoid paying overtime and other benefits mandated under state and federal laws.
The class action lawsuit, filed in U.S. District Court for the District of Connecticut by three former drivers, claims FedEx attempted to circumvent the federal Fair Labor Standards Act (FLSA) by employing drivers through Independent Service Providers (ISP). On paper, the drivers worked for a third-party company contracting out drivers for FedEx, in reality, the plaintiffs contend they were actually FedEx employees since they used company equipment, wore company uniforms, and utilized company systems to perform their duties.
The plaintiffs, hailing from Connecticut, Massachusetts, and Texas, allege to have routinely worked more than 40 hours per week but the defendant never paid the group one and a half times the average hourly wage as compensation for these overtime hours. While FedEx claims the ISP should have paid out these overtime wages, the law holds joint-employers are just as liable for ensuring compliance with wage and labor laws.
Independent Contractor Wage Laws
Under the FLSA, independent contractors are overtime exempt from the entity hiring the individual for services. However, the Internal Revenue Service (IRS) and the Department of Labor (DoL) expect independent contractors to exercise freedoms in how these workers go about doing their jobs.
To help workers and business understand these expectations, the IRS has a 20-factor independent contractor test to help evaluate whether or not these individuals truly qualify for overtime exemption. While much of the language in the test is direct and obvious, many unscrupulous businesses still attempt to violate the law and keep expenses down by suppressing worker wages.
Delivery Driver Unpaid Overtime Lawsuits
Call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page if you feel that your wage rights are being violated under the FLSA. Our top-rated team of unpaid wage lawyers will evaluate your situation to determine your best course of action to help you seek justice.
Our office will also determine if it is in your best interest to file a lawsuit against your employer. Because strict time limitations apply for filing these types of claims, we advise you contact our experienced unpaid overtime wage attorneys at your earliest convenience and preserve your legal rights.